Encashment of Leave salary for LTC
Recent Posts
- Health Ministry invites quotes for New Health Insurance Scheme
- Take a leaf out of Punjab Govt’s Book
- KV resumes admission process for 2010-11
- Internet Banking-Safety is in your hand
- How salps jellyfish save earth ?
- Revision of Pre-2006 Punjab State Pension
- Budget-what’s in for CG Employees and Pensioners?
- Income Tax Rates 2010-11 (Assessment Year 2011-12)
Mr. Dalvi C.G asked
Please clarify whether Leave encashed at the time of availing LTC is to be deducted from the leave account of employee at the same time or not. Also clarify whether separate account of 60 EL encashment is to be maintained?
GC Team’s opinion
While availing Leave Salary encashment for LTC, the leave encashed should be deducted from the EL credit at that time itself along with EL taken for LTC.
But this is not applicable for all cases as LTC can also be availed on CL.
In that case only encashed EL is be deducted.
But this Leave encashment debit should be made separately in red ink. An abstract as hereunder may be maintained in LA it self
| LTC Leave Encashment Account | |||
| Date | Availed | Progressive | balance |
| 1/2009 | 10 | 10 | 50 |
| 3/2010 | 8 | 18 | 42 |
14 Responses to “Encashment of Leave salary for LTC”
Leave a Reply
Calculate Income Tax 2009-10
Search GConnect
Subscribe
You can subscribe to receive newsletter updates by email:
Subscribe through a RSS feed reader
Bits and Bytes
Microsoft Indic Language Input Tool
While very intelligent online typing tools such as quillpad, for almost all Indian regional languages are available, Microsoft has come up with a different kind ...
Zeya Alam said on Thursday, February 4, 2010, 12:57
Dear Sir
I have just retired as GM from U.P.R.V.U.N.Limited(A U.P. Govt. undertaking). I will be getting following terminal benefits and want to know from your experts about my Tax liability on these.
1:Leave encashment on accumulated leave Rs:697000/
2:Gratuty:Rs:1000000/
3:Commutation of 40% Pension Rs:1222294/
Reply
admin Reply:
March 7th, 2010 at 6:05 pm
As per existing IT provisions retirement benefits mentioned by you attract no income tax
Reply
SatNair said on Thursday, February 4, 2010, 12:57
GC Team’s opinion is correct.
Reply
Mr. R.N. GUMGAONKAR, LDC, DMC, NAGPUR said on Thursday, February 4, 2010, 18:16
Respected shri Dalvi,
As per rule the availed leave salary encashment is to be deducted from the leave account of employee both LTC and Leave encashment at the same time. Proper entry in red Ink should be made in service book for final payment of Leave encashment after retirement can be made correctly.
While availing LTC on CL also, the leave Salary Encahshment would be deducted form his leave account.
Thanking you.
Reply
Mr. Dalvi C.G. said on Thursday, February 4, 2010, 18:44
Pl clarify 1. whether 60 days EL encashment available for LTC is in addition to 300 days EL encashment payable at the time of retirement 2.whether two separate EL accounts are to be maintained 3.whether 60 days EL encashment is to be given from 300 days EL,maximum quantum encashable on retirement 4.EL encashed prior to 6th cpc is to be subtracted or not at the time of retirement 5. Is this 60 days EL encashment is only for LTC and not to be linked to 300 days EL encashable at the time of retirement.
Reply
salim pathan said on Friday, February 5, 2010, 12:58
While LTC availed on Cl. Encashed EL would be deduct from leave account
Reply
Balkar Singh said on Friday, February 5, 2010, 19:17
Please provide me a policy letter regarding employment of son/daughter in case of employee medically unfit.
Reply
harjinder singh said on Friday, February 5, 2010, 22:20
could anyone please clarify whether encashed leave is to be debited before the commencement of other leave or after expiry of that other leave?
Reply
M. Parwez said on Monday, February 15, 2010, 8:52
whether the leave encashment on LTC is taxable or not?. As it is not deductible form overall 300 days the DDOs are resorting to TDS on this encashment as well.
Reply
admin Reply:
February 15th, 2010 at 1:04 pm
Leave encashment on LTC is taxable
Reply
zeya alam said on Monday, March 1, 2010, 20:25
whether leave encashment on RETIREMENT is taxable or not?
I retired on 30.09.2009 from U.P.R.V.U.Nigam Limited(A Government Of Uttar Praadesh Undertaking) and received Rs:697000/= as my leave encashment.
Please reply.
Reply
admin Reply:
March 2nd, 2010 at 6:34 am
it’s not taxable
Reply
c jaya prakash said on Tuesday, March 9, 2010, 16:56
I have availed 10 encashment of earned leave on LTC. i want to know, this amount is taxable under income tax as income from salary. please clarify.
Reply
admin Reply:
March 10th, 2010 at 7:41 pm
yes it’s taxable
Reply