Leave encashment tax

I changed from 1 company to another company last year . Is the leave encasement i received is taxable or not .
I have already filed my IT returns paying tax for leave enchantment and it is fully acknowledge can i modify and  file now again and claim returns?
Asked 1 year ago in Income Tax from Bangalore, Karnataka
Dear Taxpayer,

Leave encashment is partly taxable and partly exempt.

Least of the following would be exempt

(a) Cash equivalent of unutilized earned leave (earned leave entitlement can not exceed 30 days for every year of actual service)
(b) 10 months average salary
(c) Leave encashment actually received. This is further subject to a limit of Rs 3,00,000.


Yes, you can modify the return

Please feel free to call/revert in case of any doubts.

Thanks and Regards
Abhishek Dugar
CA CS B.Com
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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It's not deduction hence its not like 80C.

It's exemption. So you have to remove it from your income, if included.
Abhishek Dugar
CA, Mumbai
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I suppose you are talking about intimation u/s 143(1) and not assessment u/s 143(2). If it is just intimation, you can file revise return within one year from the end of assessment year.

We can help you in filing revised return.

Please feel free to call/revert in case of any doubts.

Thanks and Regards
Abhishek Dugar
CA CS B.Com
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
2081 Answers
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You cannot file a revise return.
Shyam Sunder Modani
CA, Hyderabad
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