01 February 2016
Section 10(AA)(i): In case of government employee leave salary at the time of retirement is fully exempted. Section 10(AA)(ii) :in case of non-government employee lease salary received by him at the time of his retirement or otherwise is exempted least of the below: 1. Leave salary actually received; 2. 10 months average salary; 3. Amount specified by the government; 4. leave entitlement of 30 days for every year of actual service
Note: Leave salary received during the employment is taxable in the hands of both Government as well as non-government employees.
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