Leave Encashment: Section 10(10AA)
|
Govt. employee only i.e. Central and State Govt. employees
|
Any other employee
|
|
Fully exempt
|
Minimum of the following four
limits:
(i) Leave
encashment actually received; or
(ii) 10
months average salary; or
(iii) Cash
equivalent of unavailed leave calculated on the basis of maximum 30 days
leave for every year of actual service rendered; or
(iv) Rs.
3,00,000
|
|
|
Meaning of salary
(i) Basic
salary plus D.A. to the extent the terms of employment so provide plus
Commission, if fixed percentage of turnover.
(ii) Average
salary of last 10 months immediately proceeding the date of retirement.
|