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Leave encashment

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25 January 2010 Hi

Is the leave encashment exempt on Basic Salary or CTC at the time retirement/reginantion.

R

25 January 2010 No, it is exempted as per least of the following

1.Actual leave encashment received
2.10 months avg, salary immediately preceeding his retirment
3.Rs.300000

If leave encashment received during the retirement from govt. service - Not taxable




25 January 2010 one more condition i.e. 4th condition
period of earned leave in months x Avg monnthly salary
for this period take 30 days of every completed year of service. deduct the leaves he has availed. now change rest in months.
minimum of these four (3 mentioned by Mr. Ramesh Krishnan) is exemption for non-govt employees


27 January 2010 Thanx



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