Tag Archives: Section 10(10AA)

Leave Encashment Tax Treatment

Leave Encashment Taxation of Leave Encashment Section 10(10AA) of the Income-tax Act, 1961, provides for exemption of the amount received by an assessee by way of leave encashment, under certain conditions and to a certain extent. Any leave encashment received by an employee of the Central Government or a State Government at the time of his… Read More »

Tax benefit of Leave Encasement is available in case of resignation also

Section 10(10AA) provides the exemption in case of Leave Encasement Whole  of payment received by an employee of the Central Government or a State Government upto Rs 3 Lakh received by an employee, other than an employee of the Central Government or a State Government In this case Hon’ble High Court held that  whether Leave Encasement… Read More »

Retirement includes resignation in section 10(10AA) and 10(10)(iii)

Retirement includes resignation Q Whether  per the provisions of section 10(10AA)(ii ) (Leave Encashment) and section 10(10)(iii) (Gratuity) the exemption is available only on retirement and not on resignation ? Both “retirement” and “resignation” result in the conclusion of the service career. In fact resignation from service is also one of the modes of retirement… Read More »