Priyanka (Article Asstistant) (33 Points)
23 August 2010Hiii !!!!
Plz cnfrm whether leave encashment received by legal heirs of deceased employee after availing exemption from amount received from employer is taxable in hands of legal heirs u/h Other Sources. or it is fully exempt in hands of legal heir. plz qoute relevant circular or section..
Thanks in advance!!
RAKESH
(Almost CA)
(2199 Points)
Replied 24 August 2010
i think u r asking about the balance amount of the leave encashment received by the legal heirs after calculating the exemption - answer is yes it is taxable.
Only privilege leave of the deceased employee is exempt from tax . Circular Letter No. f-35/05.11.1965
other than these everything is taxable.
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