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tax on leave eancasment

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(Querist)
12 December 2008 goodmorning sir.

my query is as follows:

one employee resigned from service after one year . He gets leave encashment on his full & final settlement .will this leave eancahment be taxable or exempted ?
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CA Tilak Raj Sharma

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CA Tilak Raj Sharma (Expert)
12 December 2008 Fully taxable.

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