Hi
While calculating the taxability of leave encashment of the resigned employee, we need to take into consideration the amount of exemption already claimed under section 10(10AA)(ii) of the Income Tax Act.
If the employee has already claimed exemption of some amount of leave encashment under the said section from the other company and the same was not in notice of the new company (reason being unawareness of the resignee or not asking for this information by new company or nything else) making full and final then what the company should do like it should calculate taxability of leave encashment on the assumption that no exemption has been previouisly claimed by resignee? In this case wh will be defaulter-company or resignee?
CAclubindia
