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Need your attention friends, leave salary

sanju (Accountant) (348 Points)

16 August 2011

friends ,

leave salary received by familyi ( after the death of assesse) taxable in the hands of family? if yes eny exemption avialable inrespect of amount received?

thanks in advance firends

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6 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 16 August 2011

I think is not taxable in the hands of the legal heir.

refer to letter no F.35/1/65-IT(B)

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sanju (Accountant) (348 Points)
Replied 16 August 2011

yes MIHIR it is not taxable , leave salary , gratuity are not taxable in the hands of legal heires

CA Raju Kumar Shaw (Service) (79 Points)
Replied 16 August 2011

Amount paid to the legal heirs of the deceased employee for the leace standing in the credit of such employee (non govt ) will be taxable other than salary head.

In case of the govt employee on his death in harness , the amount amount recieved by the legal heir will not be taxable.

sanju (Accountant) (348 Points)
Replied 16 August 2011

is there any exemption available in respect of leave salary taxable in the hands of legal heirs?

Peter Sequeira (*) (81 Points)
Replied 16 August 2011

Gratuity received by legal heirs incase of Government employees in exempt in the hands of the legal heirs.

Incase of all other employees, the gratuity received by legal heirs in excess of the amounts calculated under sections [10(10)(ii)] or [10(10)(iii)] shall be taxable under the head "Income from Other Sources".

Leave salary received by the family of a Government servant, who died in harness, is not taxable in the hands of the recepient.

Leave salary paid to legal heirs of a deceased employee in respect of privilege leave standing to the credit of such employee at the time of his death is an ex-gratia payment on compassionate grounds and hence is not taxable.