04 March 2009
IN Leave encashment income tax allow us to encash the unavailed leaves @ 30 per completed year of service.If 25 leave are allowed in the company & employee worked for 2yrs.5 months & availed no leaves.He encash all leaves i.e.725(29*25) as per company policy . Now my Ques. is that whether he will be allowed 625
04 March 2009
Dear Balaji, If employee worked for 2yrs and 5 month than max leave allowed will be 50 i.e. 25*2 and income tax says that max. of 30 days leave in a year. In a case when employee is getting less leave, the lesser one should be considered
CAclubindia
