Leave encashment u/s 10 (10aa)

abhishek bag (Payroll & Tax Analyst) (188 Points)

27 February 2014  

Dear Sir/ Madam,

Please confuse my following doubt about Leave Encashment U/s 10 (10AA). Suppose an employee's total duration of service 5 years & 9 months. He consumed 95 days leaves within 5 years and 15 leaves witthin next 9 months. So he consumed total number of leaves 110 days during his total emplyment tenure (i.e. 5 yrs & 9 moths) . Now fraction of year should be ignored while calculating Leave Encashment. Now I want to ask you which leave consumption figure should be taken into considertion (95 leaves which is consuumed within 5 years or 110 leaves which is consumed within 5yrs &  9 months) as calculation will be done on 5 years.. 

 

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