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leave encashment
What is the salary to be considered for payment of encashed leaves.
Replies (10)
Salary = basic + dearness allowance to the extent of forming part of retirement benefit.
Thanks a lot sir.I wanted to know whether it is as per Income tax act or shop and establishments act.
As income Tax Act, 1961
As per Income Tax Act,1961
Thank you sir.
Salary for the purpose of leave encashment exemption under Section 10(10AA) will be as under:
Salary for this purpose means basic salary and dearness allowance, if provided in the terms of employment for retirement benefits and commission which is expressed as a fixed percentage of turnover.
Salary for this purpose means basic salary and dearness allowance, if provided in the terms of employment for retirement benefits and commission which is expressed as a fixed percentage of turnover.
Noted sir.Thanks once again for your kind gesture.
Also add commission which is expressed as a fixed percentage of turnover.
Thanks sir.But as per our company policy employees can encash up to 5 leaves which is left in their account.And to say with an example.Im having 12 privileged leave and 4 CL which is not utilized.And they will encash only 5 days leave.And the rest is lapsed as per company policy.
sir,with regards to above details hope I may receive only 5 days salary which is computed based on my basic plus DA.
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