Leave encashment refund

The entire LE cannot be tax free I think, there is some rule in private sector if you belong to it. Plz give details of how many years you worked, how much leave encashment you have done and company rules regarding LE.

Originally posted by : Udgam Koomar
	The entire LE cannot be tax free I think, there is some rule in private sector if you belong to it. Plz give details of how many years you worked, how much leave encashment you have done and company rules regarding LE.

Thanks for your reply! I have done all those checks. However, the LE amount was 90,000 and upto 300,000 is exempted. The problem i am facing is, how to get this exemption while filing the return? As per my form 16, LE is included in salary and hence TDS is done.

If It is exempt then show it in your ITR as exempt income .
income from salary will be considered after deducting (excluding) exempt income i.e. leave encashment

Income from salary will be shown excluding Leave Encashment, TDS will be refunded(if any)

Thanks! So if my income from salary is X, then I can show it as X-90,000? But how do i give a proof that 90,000 is LE?

What does it mean.......
any amount is given by department(any) with supporting/writing letter,
otherwise how did you know
any supporting document, is having mention about leave encashment, is a proof

The story is, I left organization in last sept and got 90k as leave encashement (which is mentioned in my payslip). However, while leaving i did not submit a declaration saying that "I have never received LE previously in my professional carrier". Because of this,they deducted the TDS on it and when they gave me form-16, then entire amount is shown as Income - and deduction u/s-10 is 0. Now while filing the return i dont see an option to declare anything under section-10 for exemption. so, is there a way around?

Line D20 in ITR-1 for exempt income
"Exempt Income only for Reporting Purpose (If agricultural income is more than Rs. 5000/- use ITR-2 or 2A)"