Income tax laws allow certain exemptions in respect of money received for encashment of leave at the time of leaving the job. In the organised sector, employees are allowed various categories of paid ...

Leave encashment means getting money in exchange for unused paid leave. Employees usually get this benefit when they retire, resign, or are terminated from service. This ensures they are compensated ...

Salary is taxable on a ‘due’ or ‘receipt’ basis, whichever is earlier. As you have retired in February 2024, the leave encashment became due to you in February 2024 itself. While section 10(10AA) of ...

I resigned in August 2024 and received leave encashment as part of my final settlement. While making the payment, the employer deducted tax on the full amount of leave encashment, contending that I ...

Leave and let leave — this seems to have become widespread at many workplaces in these current tough times. But the phrase has a different connotation too when it comes to employers, employees and the ...

Mr. Vashistha, a retired employee of the State Bank of India from Jaipur, had to file a case in the Income Tax Appellate Tribunal (ITAT) after the income tax department denied him a higher tax ...

If you are a workaholic and are planning to switch jobs or retire soon from a private company, the revenue authorities have good news for you. The amount paid as leave encashment would now be tax-free ...

Leave encashment tax calculation: Accumulated leave can either be encashed during service or at the time of retirement or resignation. Any leave encashed during service is fully taxable and forms part ...

'The number of leave accumulated sometimes goes up to 300.' 'The encashed amount is equivalent to almost 10 months' salary.' Illustration: Uttam Ghosh/Rediff.com Union Budget 2023 has proposed to hike ...