Recovery of taxes paid on leave encashment

When I left my last company last year I received a decent amount as leave encashment. The salary slip mentions this amount specifically as "leave encashment" amount. But form16 I received this year from them doesn't say anything about leave encashment unlike gratuity. So this amount has been put in the total taxable amount. Now while filing return this year I thought leave encashment is totally taxable so I paid tax on that too through challan. Now I hear if amount is less than 3L (and some other conditions too which I fullfil) then no tax.

 

But I wonder if the form 16 of the previous org doesn't say anything about leave encashment and shows that amount as taxable then how income tax dept will know that the amount was received as leave encashment. Would I need to get modified form16 (possible??) which will show that this amount (leave encashment) is not taxable like it is showing for gratuity.  As its a reasonable amount I am ready to consult a CA who has a solution for this. But I am not finding a suitable CA.

 

Replies (1)

Send your specific query along with required details to info @ taxcareindia.com

Thanks,

Tax Care India Team

Originally posted by : R T
When I left my last company last year I received a decent amount as leave encashment. The salary slip mentions this amount specifically as "leave encashment" amount. But form16 I received this year from them doesn't say anything about leave encashment unlike gratuity. So this amount has been put in the total taxable amount. Now while filing return this year I thought leave encashment is totally taxable so I paid tax on that too through challan. Now I hear if amount is less than 3L (and some other conditions too which I fullfil) then no tax.

 

But I wonder if the form 16 of the previous org doesn't say anything about leave encashment and shows that amount as taxable then how income tax dept will know that the amount was received as leave encashment. Would I need to get modified form16 (possible??) which will show that this amount (leave encashment) is not taxable like it is showing for gratuity.  As its a reasonable amount I am ready to consult a CA who has a solution for this. But I am not finding a suitable CA.

 

 

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