Is leave encashment taxable as salary? - Tax India

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Friday, February 16, 2018

Is leave encashment taxable as salary?



 Is leave encashment taxable as salary?


​​​It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.​

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