Leave salary in itr 1

Show the net salary after allowing leave salary exemption as per I.T. Act.  There is no column/row in ITR 1 to show Leave Salary.

Encashment of Leave during tenure of service with same Employer is taxable under head salary. No exemption is allowed unless he has resigned from Job or retired where exemption is allowed under section  10[10AA].  

I ope this is clear

Mr Vipin File ITR-2A.  In Salary sheet  s.no 2[iv] - others  mention the amt of leave encashment. In Salary s,no 1 mention salary minus the leave encashment amt.

In case of Central government or State government employee(excluding employees of a local authority or statutory corporation) – Fully Exempt

In case of any other employee –

Least of the following is exempt:-

• Actual amount received
• 3,00,000
• 10 months average salary
• Average salary x leaves at the credit of an employee (leaves cannot exceed 30 days for every completed year of service, fraction of a year is to be ignored)

Salary includes basic pay, dearness allowance(if it forms part of the retirement benefits) and percentage wise fixed commission on turnover

Average Salary = Average of salary drawn in the last 10 months immediately preceding the date of retirement.

If leave encashment is received by an employee from more than one employer in the same previous year or in different previous years the aggregate maximum amount exempt from tax on account of gratuity cannot exceed Rs. 3,00,000.