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Tax on Leave Encashment amount after resign

Tax queries 1289 views 2 replies

Dear Sir/Madam,

 I have receved the Amount for leave encashment  47771(31 days) from my previous employer after I resigned from the job.

Just wanted to know is this amount eligible from total taxable income.If yes then under which section of income tax rules.

Please clarify.

 

Replies (2)

dear veenit

leave salary amount is taxable but u can claim exemption under sec. 10(10AA).after this it will be included in total income.

regards

tarun rustagi

section 10 (10AA) covers retirement and resignation. you can claim exemption upto 300000


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