very useful article. The author may however may pl clarify on one thing that Earned Leave encashment, whether is exempted, for a person who is working in a public limited company and is encashing the EL balance on account of separation whether on retirement/resignation.
RE:Goog one
by Nitin Agarwal on Apr 20, 2007 03:27 PM Permalink
earned leave is non taxable in case of Govt Emp or public or Pvt ltd company under section 10(10AA).
RE:[object]
by Nagesh P on Apr 20, 2007 02:59 PM Permalink
Normal EL Encashment is taxable. I am talking about EL encashment on Separation. Pl confirm.
RE:Goog one
by Pawan Sachdeva on Apr 20, 2007 03:22 PM Permalink
Yes EL will be exempt from tax as was held in CIT V. R. V . Sahney (1986) 159 ITR 160, voluntary retirement from service is one such case which comes within the four corners of the expression " otherwise than superannuation"
