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.
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.
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.
Thanx Pankaj for the responses. Appreciated.