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The amount of leave encashment received during the tenure of service with the same employer is fully taxable and no exemption is allowed. It will be treated as party of salary and taxable under the head Income from salary.
The amount of leave encashment received during the tenure of service with the same employer is fully taxable and no exemption is allowed. It will be treated as party of salary and taxable under the head Income from salary.
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Hi, Encashment of leave at the time of retirement is dealt with in Section 10(10AA) of the Income Tax Act. The exemption is available to the Government and other employees in below manner: A. Govt Employees(Central Govt and State Govt) : The amount of leave encashment received by govt employees on rRead more
Hi,
Encashment of leave at the time of retirement is dealt with in Section 10(10AA) of the Income Tax Act. The exemption is available to the Government and other employees in below manner:
A. Govt Employees(Central Govt and State Govt) :
The amount of leave encashment received by govt employees on retirement is fully exempt from tax. Means no tax liability on encashment of earned leave at the time of retirement.
B. Other Employees:
Least of the below is exempted other employees from the amount received towards Leave encashment at the time of retirement (whether on superannuation or otherwise):
Here we need to remember the following terms:
Regards
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Resignation is also treated as retirement and section 10(10AA) provides certain exemptions from the amount of leave encashment. This section applies equally to a case of voluntary retirement on account of resignation. In the following manner it will be exempted: Resignation by Government Employee: TRead more
Resignation is also treated as retirement and section 10(10AA) provides certain exemptions from the amount of leave encashment. This section applies equally to a case of voluntary retirement on account of resignation.
In the following manner it will be exempted:
Resignation by Government Employee:
The full amount of leave encashment is exempted.
Resignation by other employees:
The least of below amount is exempted from income tax:
Here
One important thing is to be required to keep in mind that in the above case Maximum limit of Rs 300000 is cumulative means if the employee has availed the exemption of leave encashment received from any one or more employers, then the limit of Rs. 3,00,000 specified above shall be reduced by the amount of exemption availed earlier.
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Hi, Services under heading Manufacturing services on physical inputs (goods) owned by others are covered under SAC Code 998821. This service code includes textile fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services,Read more
Hi,
Services under heading Manufacturing services on physical inputs (goods) owned by others are covered under SAC Code 998821. This service code includes textile fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services, made-up textile article manufacturing services, carpet and rug manufacturing services, cordage, rope, twine, and netting manufacturing services, and other textile manufacturing services.
Following is the description of this code:
| S.No. | SAC Code | Services |
| 1 | SAC Code 998821 | Textile manufacturing services |
Following is the list of job work GST Rate applicable thereon for your ready reference:
| Job Work | GST Rate % |
| Dyeing (Grey cloth to dyed cloth) | 5 |
| Bleaching (Grey cloth to bleached cloth) | 5 |
| Rotary Printing (All overprinting on dyed cloth) | 5 |
| Raising Brushing and shearing (Removing shrinkage in cloth) | 5 |
| Fabric Cutting (Fabric is cut in cloth bit) | 18 |
| Chest Embroidery (Embroidery on cloth bit) | 18 |
| Chest Printing (Printing on cloth bit) | 18 |
| Sewing (Swing on cloth bit) | 18 |
| Garment washing (washing of stitched garment ) | 18 |
| Kaja/Buttoning (Kaja preparation or fixing button in the garment) | 18 |
| Hand Embroidery (Embroidery on garments) | 18 |
| Checking, ironing, and packing (Checking, ironing & Packaging of garments) | 18 |
| Other Job Work | 18 |
In your case, GST on Chest Printing will be 18%.
Regards.
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a) Uncommuted pension:- Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advRead more
Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advance lumpsum amount this is called commuted pension. The pension may be fully or partly commuted.
See lessHi, Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It's called funded pension plan. It can alsRead more
Hi,
Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It’s called funded pension plan. It can also be unfunded means the benefits are paid for by the employer by himself at the time of retirement.
Under Defined-contribution Plan, An annuity is paid to the member of an investment scheme. The contribution is made by employee from his salary or by the employer into a pension fund. This pension fund works as an investment fund. At the time of retirement, the pension will be paid out from this fund’s return. Unlike to defined benefit plan, the annuity is not fixed and guaranteed. It may vary as per the performance of the pension plan.
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What is Voluntary Retirement Scheme? VRS is a monetary facility provided by the corporates for the retrenchment of some of its employees due to various reasons related to employees and the company. It is opted by an employee that wishes ...
Pension is a kind of retirement benefit that is provided to the retired employees of an organization as compensation for past employment with that organization. It is paid over a regular, fixed period of time and in form of an ...
Income Tax on Leave Salary The basic knowledge An employee is allowed various types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to ...
Companies allow their employees different types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to next year. Sometimes, the employee is also allowed to encash these unutilized leavRead more
Companies allow their employees different types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to next year. Sometimes, the employee is also allowed to encash these unutilized leaves and can earn a salary against them.
If the employee is given some monetary benefit against his carry forwarded leave then it is called encashment of the leave.
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