25 November 2013
If an employee resigns whether the salary ( Basic, Other Allowances and Leave Encashment) is taxable at the time of Full & Final Settlement.
25 November 2013
The Basic Salary and other allowances are to be treated as if the employee is in service. . In case the employee receives leave encashment in respect of accumulated leaves during his tenure in service, it is exempt to certain extent vide Section 10(10AA). . However, if leave is encashed by the employee periodically, it also becomes taxable. .