income tax on leave encashment at the time of retirement

I am a CPSU ( BHEL ) employee. Is the leave encashment for CPSU employee tax free OR I have to pay the tax on it??

asked Sep 10 '12 at 16:03 by arunkl 1●1●1●1

One Answer:

In your case, the exemption is to be limited to minimum of all below:

The actual amount received
The cash equivalent of leave balance (max 30 days per year of service)
Maximum of 10 months of leave encashment, based on last 10 months average salary
Rs. 3 Lakhs

answered Sep 12 '12 at 11:53 by Pankaj Batra 5.2k●3●20

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Asked: Sep 10 '12 at 16:03

Seen: 3,451 times

Last updated: Sep 12 '12 at 11:53