Is Leave Encachment taxable or not

Hi ,

I had resigned from BIAL in oct 2010, they had paid me leave encashment of amounting 85146.00 INR at the time of final settlement,and my basic salary was 36,286.00 INR, and after that I have Joined another company in nov 2010. After seeing your website i came to know leave enchasment is not fully taxeble,So i checked form 16 of 2010,and I found in my form 16, BIAL had shown entire Leave encashment amount under taxable income tab ,nothing i fould in exemptions list ,Was i eligible for exemption under 10a for leave encashment, if yes so how i can get tax refund ,paid extra now.



asked Aug 25 '12 at 11:26 by pkd1977 111

You can claim for exemption while filing income tax return and claim for refund.

Generally employer don't give exemption for leave encashment in form-16 and employee has to claim it in income tax return.

answered Aug 28 '12 at 21:24 by Pankaj Batra 5.2k320


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Asked: Aug 25 '12 at 11:26

Seen: 2,457 times

Last updated: Aug 28 '12 at 21:24