Leave Salary in Form 16

show as a separate line item as Exemption

While preparing Form 16 we will include the gross amount of leave encashment paid in point 1(a) i.e. income under Section 17(1) whereas exemption will be shown under point 2 as a seprate item as leave encashment exemption is available u/s 10(5).

First include the total amount of lease salary given to the employee in his gross total salary then allow exempteion in a separate line.

Leave enchasement as in form 16 is after exemption or is to be taken at the time of filling the return.

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