Hi Friends
I have some doubts regarding the PL Encashment.
I have received the PL encashment for the calender year 2007 & 2008 today
whether the amount will added to taxable salary or it is exemption from the income tax.
Wating for your reply
Thanks & Regards
Ravi
From India, Bangalore
I have some doubts regarding the PL Encashment.
I have received the PL encashment for the calender year 2007 & 2008 today
whether the amount will added to taxable salary or it is exemption from the income tax.
Wating for your reply
Thanks & Regards
Ravi
From India, Bangalore
Hi Ravi,
Leave Encashment while in service is taxable. Encashment of sick leave is taxable. Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. In the case of non-Govt. Employees, leave encashment is exempt to the extent of the least of the following four amounts: -
But the major question is in case of the private companies, where the attrition factor is, whether resignation tentamount to be a retirement? In other words the amount received towards the PL under the full and final sattlement is taxable? This is taxable!
Please comment (on above) all members viewing this post .
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From India, Jaipur
34Leave Encashment while in service is taxable. Encashment of sick leave is taxable. Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. In the case of non-Govt. Employees, leave encashment is exempt to the extent of the least of the following four amounts: -
- Rs. 3,00,000/-
- Ten months' average salary;
- Cash equivalent of the leave due at the time of retirement;
- Leave encashment actually received at the time of retirement.
But the major question is in case of the private companies, where the attrition factor is, whether resignation tentamount to be a retirement? In other words the amount received towards the PL under the full and final sattlement is taxable? This is taxable!
Please comment (on above) all members viewing this post .
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From India, Jaipur
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PF Deduction_Leave Encashment.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf