Leave salary provision

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Devendra (Querist)
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22 August 2011 Whether the Provision made for Leave salary is deductible? If yes, please provide me the Case Law.

Regards,
Devendra

Ravi Jhamb

Ravi Jhamb (Expert)
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23 August 2011 Kindly elobrate your query

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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23 August 2011 Is it received during the year when you are in service? If yes then it is taxable and if it is received after the retirement then it is not taxable.

The expert has rightly said that you are not clear on your question. You should give the details to enable the experts to answer properly

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 August 2011 Whether the Provision made for Leave salary is deductible?

No. Employer can claim expenditure of leave Salary only on payment basis.

If provision is made and payment is made before the due date of filing of return it is allowable otherwise it will be allowed in the year of payment.

Pl refer clause (f)of section 43B.