Powered by Google TranslateTranslate
Menu
Search
Search

Is the cashing of a leave of absence taxable as salary?

Question

Is the cashing of a leave of absence taxable as salary?

Expert Answer
Answered 25 Nov 2022
1997 views

If received while in service, it is taxed. The Government employee is exempt from paying taxes on any leave encashment they earned at retirement. In the hands of non-government employees, leave encashment will be exempt up to the maximum established limit in this regard by the Income-tax Law.

Ready to Start Your Business Journey?

Download our comprehensive guides to help you understand the business landscape in India and make informed decisions.

Have questions? Let's talk! Schedule Free Consultation