Hi,
In Nov 2010, I resigned from a private sector company after serving for 3.5 years and joined another one . My leave encashment amount was 67677 but the previous employer added it to the 'Gross Income' but did not provide me 'Leave Encashment Exemption' and hence I paid income tax on it. These figures are mentioned in the Full and Final Settlement Letter but are not mentioned on the Form 16 I received recently.
My question: Can I claim the income tax exemption on leave encashment while filing the IT returns now ? If yes, can I deduct the leave encashment amount from my 'Gross Income' and recalculate my tax liability ? Please provide useful details.
Thank you very much for your time and awaiting your valuable responses.
Gaurav
CAclubindia
