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Half pay leave taxable or exempt?

AUDITOR VINOTHKUMAR (a) (875 Points)

01 June 2018

Dear sir/madam,

My client govt. employee retired He recd. after retirement HALF PAY LEAVE TAXABLE OR EXEMPT?

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6 Replies

Aaquib Patel (22 Points)
Replied 01 June 2018

taxable

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AUDITOR VINOTHKUMAR (a) (875 Points)
Replied 01 June 2018

sir, pls any explain me.. any example

Aaquib Patel (22 Points)
Replied 01 June 2018

oh wait. u talking about leave encashment post retirement?

for govt employees it is exempt.

For non-govt employees, the amount exempted on retirement is least of the following: a) actual leave encashment amount b) 10 months' average salary (basic salary, dearness allowance and commission based on fixed percentage of turnover achieved by the employee average salary drawn in past ten months immediately before retirement) c) Cash equivalent of unutilised earned leaves (leave earned cannot exceed 30 days for each year of service rendered to the employer) d) Rs 3 lakh - the maximum amount specified by the government.