Leave salary

Tax queries 381 views 1 replies

An employee left the company in the month of march and the company paid him leave encashment in the month of april. Is leave salary taxable on receipt or accrual basis? 

Replies (1)

As the salary includes any payment received by an employee in respect of any period of leave not availed of by him and salary is taxable on the due basis.

that's why leave salary shall also be taxed on due basis.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register