Tag Archives: Section 10(10AA)

Leave Encashement Exemption Limit Increased to Rs 25 Lakh

By | May 25, 2023

Leave Encashement Exemption Limit Increased to Rs 25 Lakh   MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 24th May, 2023 (INCOME-TAX) S.O. 2276(E).—In exercise of the powers conferred by sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central… Read More »

Leave Encashment Income Tax Treatment

By | July 5, 2018

Leave Encashment Income Tax Treatment Leave Encashment Income Tax Treatment / Taxation of Leave Encashment Why Leave Encashment is taxable : As per Section 17(1) of Income Tax Act  : (1) “salary” includes— …… —- (va) any payment received by an employee in respect of any period of leave not availed of by him; When Leave Encashment is not taxable   Section… Read More »

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

By | June 24, 2016

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)

By | September 7, 2015

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 »