Are you Salaried Employee? Leave encashment is taxable while in service

Are you Salaried Employee? Leave encashment is taxable while in service

As per the Income Tax rules, leave encashment is taxable as a salary if you receive it while in service. If a government employee gets leave encashment at the time of retirement, then s/he doesn’t have to pay tax on it. The official Income Tax website says, “​​​It is taxable if received while in service….

Leave encashment to officers appointed on contract in various posts under Government

Leave encashment to officers appointed on contract in various posts under Government

Central Government Officers who are appointed on contract in various posts will be allowed encashment of earned leave at their credit on the date of termination of contract, subject to the condition that for each completed year of service put in by him in the post in such contract appointment, not more than 10 days benefit of earned leave encashment shall be permissible