I want to know regarding gratuity and leave encashment taxable or not taxable during resignation and retirement .
From India
1From India
.Leave encashment of accumulated leave is taxable as follows:
a) If you are not a central or state government employee
b) leave encashment actually received/10 months average salary/300000/cash equivalent of unavailed leave on the basis of 30 days leave for each year of completed service.
Sec10(10AA) of IT act is relevant
Salary here means=Basic + dearness allowance+turnover based commission.
This is for information.
however cross check with your CA before acting upon this advice for your satisfaction.
From India, Pune
a) If you are not a central or state government employee
b) leave encashment actually received/10 months average salary/300000/cash equivalent of unavailed leave on the basis of 30 days leave for each year of completed service.
Sec10(10AA) of IT act is relevant
Salary here means=Basic + dearness allowance+turnover based commission.
This is for information.
however cross check with your CA before acting upon this advice for your satisfaction.
From India, Pune
Dear 
,
Answer to you, are as under:
As regards to Gratuity at the time of resignation and retirement :
Govt. employees - no Tax
Other than Govt. employees / Gratuity as per POG Act - exemption up to Rs. 10 lacs.
If gratuity is received in earlier years then exemption at time of retirement will reduce to that extent, subject to the overall limit of 10 lacs.
As regards to leave encashment on resignation and retirement:
Govt. employees - no Tax
Other than Govt. employees - exemption on least of the following:
1. Leave encashment actually received
2. Average salary of 10 months
3. Equivalent to maximum 30 days unavailed leave if any per every year of completed service
4. Rs. 3 lacs.
Salary for this purpose is only Basic + DA.
One can correct me if I am wrong.
From India, Mumbai
Answer to you, are as under:
As regards to Gratuity at the time of resignation and retirement :
Govt. employees - no Tax
Other than Govt. employees / Gratuity as per POG Act - exemption up to Rs. 10 lacs.
If gratuity is received in earlier years then exemption at time of retirement will reduce to that extent, subject to the overall limit of 10 lacs.
As regards to leave encashment on resignation and retirement:
Govt. employees - no Tax
Other than Govt. employees - exemption on least of the following:
1. Leave encashment actually received
2. Average salary of 10 months
3. Equivalent to maximum 30 days unavailed leave if any per every year of completed service
4. Rs. 3 lacs.
Salary for this purpose is only Basic + DA.
One can correct me if I am wrong.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity-Leave calculation on CTC-Rev..xls
FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip