Leave encashment at the time of service is fully taxable. Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted. But for other employees, an exemption is provided u/s 10(10AA)(ii) as per tRead more
Leave encashment at the time of service is fully taxable.
Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted.
But for other employees, an exemption is provided u/s 10(10AA)(ii) as per the below method:
Leave encashment received
200000
Average salary* of last 10 months
180000
Salary per day * Balance of earned leave for service span (Maximum 30 days leave per year for every year of completed service is allowed)
250000
Amount notified by the Government Rs 3,00,000 aggregate.
3,00,000
Leave encashment Exemption(Lower of above)
180000
*Salary means basic salary, dearness allowance, and commission based on a fixed percentage of turnover secured by the employee.
So the taxable amount is Rs 2,00,000-1,80,000=20,000/-
Leave encashment at the time of service is fully taxable. Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted. But for other employees, an exemption is provided u/s 10(10AA)(ii) as per tRead more
Leave encashment at the time of service is fully taxable.
Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted.
But for other employees, an exemption is provided u/s 10(10AA)(ii) as per the below method:
*Salary means basic salary, dearness allowance, and commission based on a fixed percentage of turnover secured by the employee.
So the taxable amount is Rs 2,00,000-1,80,000=20,000/-
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