SCOPE OF EXEMPTION UNDER SECTION 10(10AA)(ii)

This query is : Resolved

PRABIR NATH (Querist)
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16 December 2008 IS THERE ANY EXEMPTION IN RESPECT OF CASH EQUIVALENT OF EARNED LEAVE AT THE EMPLOYEES CREDIT ONLY AT THE TIME OF RETIREMENT, WHETHER SUCH RETIREMENT IS ON SUPERANNUTION OR OTHERWISE?

SUPPOSE AN EMPLOYEE RESIGNED AFTER ONE YEAR /TWO TEAR/ THREE YEAR & GOT LEAVE ENCASHMENT OF RS 45000/ , IS HE CLAIM FOR EXEMPTION FOR INCOME TAX FROM EMPLOYER.

Sanjeev Kumar Varshney

Sanjeev Kumar Varshney (Expert)
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17 December 2008 For Govt employees, whole amount is exempt.For others, exemption limit is Rs 3 Lacs subject to conditions as mentioned in Section 10(10AA).

He can claim exemption of leave encashment of Rs 45000/- under this section.