Leave encashment

when leave is carry forward then there is no tax implecation on that.

because no payment was made

Dear Prashant,

Thank you for your reply. Can you please give me the Bare Act regarding this

though i didnt get u, but let me help u

Meaning of Earned Leave

Leave salary received by any employee during the period of  service is fully Taxable.however relief under section 89 read with rule 21A can be claimed

B)Leave Salary to At the time of Retirement /superannuation or otherwise.

Dear Diwakar

I don't think Bare Act will solve this.  Income tax apply on leave encashment when it is received by employees. So when employee doesn't receive any money how can you make it taxable to them. so on commulative leave there is no tax. yes, when it will be encashed then it will be taxable according to income tax act.

Originally posted by : CA Prashant Gupta
	Dear Diwakar I don't think Bare Act will solve this.  Income tax apply on leave encashment when it is received by employees. So when employee doesn't receive any money how can you make it taxable to them. so on commulative leave there is no tax. yes, when it will be encashed then it will be taxable according to income tax act.

completely agree with this comment and my information will be sufficient for this question. thats it
 

Dear Members,

Thank you for your prompt reply. Your information has solved my queries. 

Thank You

Regards

Diwakar