income tax on leave encashment

Sir I have retired from SBI & taken voluntary retirement after completion of 31 years of service my question is on how much amount I have to pay Income Tax or exempted fully

asked Jul 12 '11 at 19:26 by RAJARAM 1111

Exemption for Leave encashment 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

answered Jul 12 '11 at 20:56 by Pankaj Batra 5.2k320


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Asked: Jul 12 '11 at 19:26

Seen: 2,268 times

Last updated: Jul 12 '11 at 20:56