TaxTMI 
TaxTMI 
leave encashment tax treatment
12 Oct 2010 
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Leave encashment exemption: specified period of last drawn salary exempt; any excess treated as taxable income.
Leave encashment received on retirement, termination, resignation or during service is treated as salary but an exemption up to 30 days of the last drawn salary (basic salary plus dearness allowance) is available; amounts exceeding that exempted period are taxable. (AI Summary)
Leave encashment received on retirement, termination, resignation or during service is treated as salary but an exemption up to 30 days of the last drawn salary (basic salary plus dearness allowance) is available; amounts exceeding that exempted period are taxable. (AI Summary)
What will be tax leave encashment of following condition:- 1. When emplyee retirment from service 2. During the Service. 3 Leaving the of service/ termination Example: Suppose A employee have 75 leave and basic salary of Rs. 200000 at the time of retirment/Leaving service/termination of service/During the service. please tell me what will be the tax of all condition. Regards Narendra