Tds on leave encashment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2014 As you know due to retreachments many employees are laid off.

In July2014 , I was forced to leave my job
they paid me the amount of notice period.

I had 172 leaves accumulated from last 4-5 years. my employer paid me leaves payment but deducted the income tax as per 20 % slab.

I has read one case from Pune where High Court has given judgement saying resigning from one job is treated as tired from that company can I claim the TDS BACK?

Thanks in advance

Rupesh Jain

Rupesh Jain (Expert)
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19 June 2014 you can claim the leave exemption u/s 10(10AA)(I)
1. cash equivalent of leave period (but for one year leave can no exceed 30days)
2. 10 month average salary
3. RS. 300000/-
4. actual amount received

which ever is less '

is exempt for taxation balance amount will include in your salary income. and tax accordingly.
for salary = Basic salary +DA for retirement purpose if include+
% commission of sales achived