Please advice, if Leave Encashment at the time of RETIREMENT is exempt under the Income Tax Act OR exemption upto certain limit is available only at the time of RETIREMENT of employee.
03 June 2011
1. IN CASE OF GOVT EMPLOYEES ANY SUM RECD ON RETIREMENT TOWARDS LEAVE ENCASHMENT IS EXEMPT 2. IN CASE OF OTHER EMPLOYEES IT IS EXEMPT UPTO CERTAIN LIMITS 3. ANY LEAVE ENCASHMENT RECD DURING SERVICE IS TAXABLE IN ALL CASES
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