Income Tax Liability on Payment of leave encashment.
This query is : Resolved
03 January 2008
Please clarify the following
1. Whether Leave Encashment is taxable which is paid to employee at the time of full & final settlement on his resignation.
2. Whether Leave Encashment is taxable which is paid to employee at the time of his retirement.
Regards.
Manish Jain
mjain@lc.jkmail.com,manishambika97@gmail.com
Please clarify the following
1. Whether Leave Encashment is taxable which is paid to employee at the time of full & final settlement on his resignation.
2. Whether Leave Encashment is taxable which is paid to employee at the time of his retirement.
Regards.
Manish Jain
mjain@lc.jkmail.com,manishambika97@gmail.com
04 January 2008
Leave encashment received whilst in service is taxable. However leave encashment received at the time of leaving the organisation on retirement or otherwise is not taxable subject to limits
So Leave encashment paid to employee at the time of resignation is not taxable and also at the time reitrement it is not taxable subject to limits specified in th ACt
So Leave encashment paid to employee at the time of resignation is not taxable and also at the time reitrement it is not taxable subject to limits specified in th ACt
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