Under the Income Tax Act (Section 10(10AA)), time off payout received at retirement is exempted. The limit of this exemption can go up to a maximum of ₹25 lakhs if it is from a non-government employer. Taxable Leave Encashment ...
Leave Encashment during service is fully taxable in all cases. Any payment by way of leave encashment received by Central & State Govt. employees at the time of retirement in respect of the period of earned leave at credit is fully exempt. In case of other employees, the exemption is to b...