Is TDS to be deducted on leave encashment during the employment ? (The person is not retired & will continue the same employment)
If yes, than at what rate TDS should be deducted ?
Thanks & Regards
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TDS on Leave Encashment
Replies (7)
Quick Summary
No separate rate for leave encashment.. add in salary taxable and deduct tax as per income tax rule
Leave Encashment is depend upon the type of employee whether they are govt or private
for govt employees leave Encashment is not taxable for private employees it will be form part of salary and taxed at slab rates
for govt employees leave Encashment is not taxable for private employees it will be form part of salary and taxed at slab rates
Leave encashment received at the time of resignation or retirement is exempted to some extent as per Section 10(10AA)
Leave encashment during service is taxable as per existing slab.
Leave encashment received during employment is fully taxable ..Rate of tax depends on your total income and type of tax regime.
No seperate rate for leave encashment.
Rate of tax depends on old regime or new regime and total income..
You may consider it as per slab rates
You may consider it as per slab rates
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