vinay (accounting) (165 Points)
04 March 2011Hello,
Is Employee liable to tax if he encashes leave during Employment? Leave encashment exemption after retirement and termination subject to conditions/clauses are understood. Can any member please clarify on this note. Please provide reference to the Sections under the IT Act.
Thank you,
Vinay
Rachit
(Ca-Final Article.)
(565 Points)
Replied 04 March 2011
Leave Encashment earned during the tenure of job are taxable.....................
Vivek Kurup
(.)
(355 Points)
Replied 04 March 2011
| Originally posted by : Rachit | ||
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Leave Encashment earned during the tenure of job are taxable..................... |
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Harpreet
(* * * * * *)
(1670 Points)
Replied 04 March 2011
Mr. Pankaj
Where you have read the same?????
tirumanyamnadamuni
(assistant director)
(61 Points)
Replied 04 March 2011
Any amount of leave salary received during the period of servie is fully taxable under the head Salary. But an employee can claim relief u/s 89. Only leave salary received after the retirment will be fully or partially exempted u/s 10(10AA)
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 04 March 2011
leave encashment earned during the tenure of job are taxable...
sachin sharma
(article)
(122 Points)
Replied 04 March 2011
hi vinay,
leave encashment earned during th job is taxable but leave salary rec. after retirement eill be fully or partly taxable in hands of employee
Siyaram Kumar
(CA FINAL/ Jr. Superintendent(Accounts) IIT BHU VARANASI)
(97 Points)
Replied 04 March 2011
It is taxable during employment for all employees..........
Arniv Sharda
(CA Final)
(3006 Points)
Replied 04 March 2011
it is taxable but i havent heard about the limit of 300000 anywhere
cheers
CA Chandrasekaran.S.R
(Proprietor)
(280 Points)
Replied 05 March 2011
Any amount received as leave encashmentwhile in service is taxable .
Only earned leave encashed at the time of retirment or termination of employment is tax free subject to ceiling in terms of no of days earned per yeer and the maximum no of days etc.Such limit is to be applied for the whole tenure of employment of the assessee(total of all employers)
CAclubindia
