Leave encashment on resignation within one year of joining

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2013 Dear Sir,
if an employee resigns or expelled within a year of joining, what should be tax implication
1. should we deduct TDS on leave encashment
2. would relief of Sec. 89 be allowed.
3. in case TDS is deductible which employer has to deduct current employer or previos employer

@VaibhavJ

@VaibhavJ (Expert)
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31 August 2013 Hi

Leave encashment is exmpt subject to max. amt payable Rs. 3lac for life time of employees employment.

TDS to be deducted by present employer on salaries paid to employee.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2013 how can current employer get conclusion if 3 lac is crossed or not that limit of 3 lacs crossed before joining current organization

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@VaibhavJ

@VaibhavJ (Expert)
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31 August 2013 you can get a declaration signed by employee declaring NIL Leave encashment claimed by him or actual amount claimed till date.