If mr x(non Govt employee) retires on 31/1/2018 after comleting service of 20yrs 10months. He was entitled for leave of 30 days per year.
Leave availed during service 480 days.
Basic salary 5000 p.m
dearness allowance 1800p.m.for retirement benefit.
Calculate leave benefit taxable under the salary.(10 months basis formula)
least of the following exempt
actual-not mentioned
maximum -300000
6800×10=68000(last 10 month avg salary×10)
120/30×6800=27200
last 10 month salary = 5000+ 1800=6800×10=68000
leave allowed=20×30=600-480(availed)=120
here as per IT rules maximum leave allowed 30 days
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