Earned leave means the leave accrued to the employee in proportion of the work done by him. This varies from employer to employer.

For example in government sector, the earned leave is 2. This can be accumulated and either taken in the subsequent months or encashed as per the rules extant in force. The employee can avail the accumulated leave during his service tenure or it can be encashed at the time of retirement or leaving the job. The taxation of Leave salary for various categories of employees is shown here under:. In Simple words from the above tabloid summary we can conclude that Leave Salary is chargeable to tax only in two cases first accumulated leave being enchased by any class of employee- Govt.

Second being accumulated leaves enchased by a non govt. The amount of leave encashment actually received at the time of retirement. How to find out leave standing to the credit of an employee at the time of retirement or leaving the job.

Step a — Find out duration of services in number of years ignore any fraction of year.

Step b — Find out rate of earned leave entitlement from the service rules — how many days leave is credited at the rendered for each year of services earned leave entitlement can not exceed 30 days for every year of actual services rendered for the employer from whose services he has retired.

For instance, if earned leave is credited at the rate of 45 days leave for each year of service, for step b calculation shall be made at the rate of 30 days leave for each year of service. If, however, earned leave is credited at the rate of 23 days leave for each year of service, for step b calculation shall be made at the rate of 23 days leave for each year of service. Step c — Find out earned leave actually taken or enchased in number of days during the service time, the computation shall be made as follows: Salary, for this purpose, means basic salary and includes dearness Allowance if terms of employment so provide.

It also includes commission based upon fixed percentage of turnover achieved by an employee, if any.

Download- Leave Salary encashment calculator. I had been retired from the Govt. Service after attaining the age of 58 years on I had received the payment of Leave encashment on the last pay drawn. Can I entitled for revised leve encashment payment on enhanced DA or otherwise. Sir, My uncle retired for S. Will you Please tell me this income is fully exempt income? It will be paid in The statutory Auditor visited the branch in April 17 and insisting for TDS on the proposed leave encashment amount and changing my from 16 for already issued to me without showing payment of leave encashment and corresponding TDS.

Sir, I was absorbed from a Central Govt Autonomous Body to a Central Government subordinate office both under same Department. While releiving from autonomous body my EL were encashed and income tax was deducted. It was also stated that the number of leave shall be deducted from maximum EL that can be encashed at the time of retirement. In such a situation am I supposed to pay income tax on ELs encahsed as this is being deducted from the maximum ELs at the time of retirement, where income tax is not deducted at the time of retirement.

I am working with a private MNC. I recently changed my job after working 6 yrs with my previous company. My previous company has considered entire amount as taxable saying that only at time of retirement the amount becomes exempted from tax.

Can you please help? I AM WORKING IN PRIVATE CO SINCE 7 YEARS. Dear sir I was working with a private company and left job after serving for 2 yrs and 10 months. When i left the job, i had 26 earned leave in my account.

I asked for EL encashment but the company refused encashment saying it is done for minimum 5yr old employees only. Pls advise whether it was right or legally i can claim my leave encashment Rgds Gaurav aggarwal.

In the equation mentioned in note 1 above, why did you divide by 30? That is the number of days in a month- which rule or law suggests that, I am curious to know. I have retd as Nationalised Banks employee on March My Leave amount was Rs 6, and in the IT returnor FY , I have availed relief of Rs 3 Lakh and paid Tax for the remaining 3.

This is apart from other tax Liabilities. In , I have received an arrears of Rs 1. IS THAT RS 1. Above Board incorporated under Company Act, in June and re-named as Himachal Pradesh State Electricity Board Limited. Now my employer has worked out Rs. Pl clarify whether I am liable to pay this tax now or ortherwise.

I am working in H. I will retire on What is the Maximum Gratuity exempted for Central Govt Employee retires on VR 29 Y 9 M service. He was working public sector insurance 30 years completed.

He was un expectely died august his accumulated leaves He was received salary basic Rs. Kindly advice deceased employee leave encashment tax liablity. In our employee died Deceased but he got Leave encashment Rs. PLEASE ADVISE HOW MUCH AMOUNT IS EXEMPTED UNDER INCOME TAX ACT. Kindly, intimate to me that my Leave Encashmente is taxable?

Res sir,I m govt highschl teacher in karnataka,I was taken 27 days non payment leave on medical base in sept,may it effects on my seniority n increment. Respected Sir, I am working as Senior Assistant in Osmania Medical College,Hyderabad Telangana , in Medical and Health Department. I am working in himachal pradesh state lectricity board ltd, a state govt undertaking created under company act and my friend retired from job on superannuation and received leave encashment rs. Dear sir, I wish to inform that sir i retired on superannuation in May, from Bank of India and got Rs.

I request you to kindly advise me position of exemption of my encashment. Haridwar UttraNCHAL MOBILE NO. I am working in a private Company and will be superannuating 60 years in a couple of months.

I have been working in the present Company for the last Am I entitled for tax exemption on these leave encashment at the time of my retirement? Kindly reply to my mail.

I retired from UCO Bank govt of India undertaking on 31st oct, and got leave encashment of Rs4. I am filing ITR-2 for AY FY , I have received a Leave Encashment when I resign my previous job in above mention period. I came to know that Leave Encashment at the time of leaving the job is tax exempted as per sec 10 10AA ii. But I could not find the correct column in ITR Please assist me where I can mention 10 10AA ii amount in ITR I have joined state govt autonomous hospital from 15th June.

Previously I was working in central govt autonomous hospital till 14th June. I have 90 days EL in my previous job. Can this be transferred from central to state govt hospital?

I wanted to know the Govt rules which I can show and ask for the transfer. We Open a New Pvt Ltd Company on 1 April , is it applicable to Earned Leave to employees. If Yes then how much earned leave. I am working in a govt. I was on leave from 26th feb, to 1st may, as I was suffering from tuberculosis. I rejoined my duty on 5th may, I resigned from a private college and switched to a government college. From my previous employer, I have received 4. Service and leave encashment of EL days that comes around 2.

I am asking to clarify whether these two are taxable or not? I retired from UCO BANK and I received 5 lacs towards leave encashment kindly clarify whether the total amount of 5 lacs is exempted from tax or part thereof. The amount of leave in enchashment is rupees 5 lakhs.

What shall be amount of tax and upto amout shall be exampted????? I retired from state bank of india and I received 5 lacs towards leave encashment kindly clarify whether the total amount of 5 lacs is exempted from tax or part thereof. For an employee in a PSB if his his salary is reduced by two increments for last 2 days on account of disciplinary action, how much should it affect the leave encashment on retirement.

Should the last salary shall be the average salary drawn in the last month or the last day on account of reduction. Pl clarify with reference of guidelines. Sir, I have served 10 years in state govt. I retd from a nationalized bank on I recd Rs as leave encashment.

Leave Encashment Calculator in Excel

Whether entire amt is tax free or only Rs is tax free. Hi, I am working in a Non-Gov organization Medical college in Karnataka Bangalore and decided to resign from this organization. I have 55 Unused ELs and when I checked with HR they are saying that Management decided for no encashment of ELs. Is it Mandatory to provide encashing of ELs at the time of releaving from the duty.

Can Management can decide on this? Is Leave encashment is Mandatory? I belong to Non-govt category. I have resigned from my company and have joined a new company. Can i claim that exemption in my new company, where i am declaring my previous income? I retired from bank of maharashtra on Now I have to file I tax returns for the year Kindly inform me how much amount from above is taxable? I RETIRED STATE BANK OF INDIA He has days of accumulated earned leave which can be encashed.

Is the leave encashment taxable? Apparently there is a UGC circular which says that leave encashment is not subject to income tax for Central University employees who are retiring. I have one doubt. Encashment leave salary seperate shows in basic,da,hra in record.

Leave Encashment Rules Policy Calculation Formula Tax Exemption Under 7th Pay Commission - 7th PAY COMMISSION (Salary)

Dear sir, How to calculate privilege leave encashment. How long time taken to credit the amount in my Bank account. I am doing service in Maharashtra state road transport corp. Is there any condition of minimum service.

I have changed by company with in 6 months and my employer is not giving me LEAVE encashment exemption, stating that I have leave within one year. I AM A EMPLOYEE OF PVT. Sir, I retired Govt. I worked on 3 year tenure jon in Central Govt. After completion of my 3 Yeat tenure i got leave encashment for 45 days around 1 Lakh. Is it taxable or. My question is whether Govt. Of India is a sole owner and having no public shareholding???

Please to give me the suggestion for following points: Thanks for the clarification wrt Avarage Salary components. However, most of the companies in Private Sector do not have Dearness Allowance components. Instead other various allowance with different names. Such employees are deprived off from the benefit of D.

A component while computing Leave Encashment or Gratuity. Had I entitled for revised Leave encashment on enhanced DA as I had received payment on last drawn. Your email address will not be published. It seems you have Javascript disabled in your Browser. In order to submit a comment to this post, please write this code along with your comment: Income Tax Articles News Judiciary ITR PMGKY Deductions Section 80C Section 80D Section 80DD Section 80DDB Section 80EE Section 80EE Section 80G Section 80GG Tax Planning Notifications Circulars Instructions Orders Press Release Budget Budget Income Tax Articles News Notifications Service Tax Articles News Notifications Excise Duty Articles News Notifications Custom Duty Articles News Notifications Budget S.

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Earned Leave Encashment Calculation [Thread ] - CiteHR

Law Articles News Judiciary Notifications CCI Notifications PPF Notifications. Leave Salary encashment Exemption, Calculation, Download calculator. A Blogger by Passion and a Chartered Accountant by Passion. Broken period interest is allowable as deduction.

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How to calculate the amount of Encashment of Leave Salary | CENTRAL GOVERNMENT EMPLOYEES NEWS

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