Sir,
A bank employee reires on 31-03-2013 he is eligible to receive Leave Encashment benefit in the month of April 2013 as per rules wether this Rs. 396000 is to included in the salary of F. Y 2012-13 or 2013-14 in which year he received the payment.
Thanks with regards
Lakshmisha
In my opinion it will be taxable in the year in which it receives i.e. F.Y.2013-14
other advice are welcome
Income is taxable under the head "Salaries" on Accrual or receipt basis whichever is earlier. In my opinion in this case Leave Encashment benefit accrues to employee after his retirement in F.Y.13-14 and also he has received the same in same year. So it will taxable in F.Y.13-14
Completely agreed with Mr. Shendye and Khushbu it will be taxable in the FY 13-14
It is taxable under the head of Income from salary in the A.Y. 2014-2015.
CAclubindia
