Readers' Corner: Taxation

Kuldip Kumar, partner and leader, Personal Tax, PwC India, answers your questions

Kuldip Kumar 

Is money received as leave encashment at the time of retirement taxable? Taxability of money received as leave encashment depends whether you are a government employee or work in other sector. In case of government employees (central and state government), leave encashment is fully exempt. In case of other employees, leave encashment is exempt up to 10 month’s average salary or the leave encashment actually received, whichever is lower. For the purpose of encashment, unavailed leave is calculated on the basis of maximum of 30 days leave for each year of completed service. Average ...

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Readers' Corner: Taxation

Kuldip Kumar, partner and leader, Personal Tax, PwC India, answers your questions

Kuldip Kumar, partner and leader, Personal Tax, PwC India, answers your questions Is money received as leave encashment at the time of retirement taxable? Taxability of money received as leave encashment depends whether you are a government employee or work in other sector. In case of government employees (central and state government), leave encashment is fully exempt. In case of other employees, leave encashment is exempt up to 10 month’s average salary or the leave encashment actually received, whichever is lower. For the purpose of encashment, unavailed leave is calculated on the basis of maximum of 30 days leave for each year of completed service. Average ... image
Business Standard
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