Is leave encashment is taxable as Per IT act.

This query is : Resolved

VIKASH BHALOTIA (Querist)
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10 October 2008 Can you calculate for me how much i will exempt from tthis leave encashment as per Income Tax act 1961.

Leave Encahment: Rs 5133
earnd leave credited for 9 month : 11 day
average salary 14000
Earlir exemption taken nil
Period of service : 9 month
reason for leving :resignation

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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10 October 2008 You were suppose to mention here whether u belonged to govt or non govt organization.

Assuming you as non govt employee ,being least as per proviosions ,Rs.5133 is exempt in your case