Leave encashment is taxable or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2013 Dear Sir,

Please guide me whether Leave encashment salary is taxable or not ?

Thanks & Regards
Janki

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 September 2013 Leave encashment during service is fully taxable.

Leave encashment during retirement

if Govt. employees- fully exempted u/s.10(10AA

If non government employees -least of the following is the employees

1. Actual leave salary received
2. Last 10 months average salary
3. Rs.3 lakhs