Taxability of leave encashment during second employment

tax free limit for leave encashment is INR 300,000 for whole life , at the time of leaving of company if employee will ask for leave encashment benefit how employer will check whether employee has already exhausted his/her INR 300,000 limit during all previous employments? Should employer take one declaration from employee that he/she has not exhausted INR 300,000 tax free limit in previous employments

Please advice

asked Jun 13 '12 at 14:26 by sgupta 1111

As such there is no mention in rule that this deduction is available once in a life. You should take this deduction at each time of leaving from an employer.

answered Jun 14 '12 at 23:18 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Jun 13 '12 at 14:26

Seen: 2,012 times

Last updated: Jun 14 '12 at 23:18