Leave encashment clause clarification

The exemption is to be limited to minimum of all below: 1. The actual amount received 2. The cash equivalent of leave balance (max 30 days per year of service) 3. Maximum of 10 months of leave encashment, based on last 10 months average salary 4. Rs. 3 Lakhs

My Question : Against point 3 above does it mean : a) calculate avg monthly salary using last 10 months numbers (DA + Basic)=A b) And then the amount against point 3 above would be = 10(months)30(days per month)A. OR b) the amount against point 3 above would be =number_of_leaves_encashed *A/30(days in month).

Please clarify.

asked Jan 10 '12 at 14:15 by MGJ 1111

What is my ex employer hasnt calculated it correctly and the same is being reflected in Form16 ? How do I file my taxes so that I can get the refund on the excess tax charged.
(Jan 11 '12 at 12:06) MGJ
Ideally you should get form-16 rectified to make corrections. If its not possible, then you can compute income tax yourself and claim refund in income tax return. As there would be mismatch between form-16 data and your return details, income tax department may raise query to explain same.
(Jan 11 '12 at 13:57) pankaj
Thanx Pankaj for the responses. Appreciated.
(Jan 11 '12 at 17:46) MGJ

Amount in point 3 would be = 10 * (Avg salary(Basic+DA) over last 10 months)

answered Jan 10 '12 at 20:07 by pankaj 5.2k320

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Asked: Jan 10 '12 at 14:15

Seen: 1,829 times

Last updated: Jan 11 '12 at 17:46