27 April 2009
Their no such requirement nor provision which requires deduction of Provident Fund on Leave Encashment. If an employee is leaving the employment, he claims leave encashment. The employer is bound to deduct Tax, if any on the income but is never required to deduct Provident fund on Leave encashment.
28 April 2009
Thanks for the clear advice. Is their any other source / evidence to show this to the concern to request him / ask him to accept the same.