Amount received by way of encashment of leave can be treated as salary for the purposes of relief u/s 89(1) of Income Tax Act, 1961.

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....STRUCTION NO. 1017/CBDT Dated : October 7, 1976 Section(s) Referred: 89(1) Statute: Income - Tax Act, 1961 Representations have been received by the Board seeking clarification whether the amount ....

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....eave cannot be said to fall within the ambit of section 89(1) of the Act. The amount received by an employee in such cases is as a result of a purely voluntary act on his part of surrendering leave to....