Leave encashment u/s 10 (10aa)

TDS 901 views 1 replies

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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Replies (1)

https://www.indiataxes.com/Information/incometax/contents/salaries/taxationofsalaries/sal_leave_sal.htm

check if this can help you!! refer to step c-which says as follows--

Step (c) – Find out earned leave actually taken or enchased (in number of days) "during the service time".

so 110days leave has to be taken for calculation


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