Refer to the excel calculator sheet LeaveEncashment-Tax-Exemption-Calculator. FTR, 10(10AA) MADRAS HC judgement.
Quick tabular for your reference is below:
| No of Days Leave Encashed | 25 | ||
| Leave Encashment Received (amount in INR) | 100,000 | ||
| Basic at time of Resignation or Retirement (last 9 months) | 37,000 | 9 | 333,000 |
| Basic in Last December (one month) | 37,000 | 1 | 37,000 |
| 370,000 | |||
| Calculation of Leave Encashment Exempted | |||
| (1) Leave Encashment (in INR) | 100,000 | ||
| (2) Statutory Limit | 300,000 | ||
| (3) Average 10 mths basic | 370,000 | 37,000 | (one month) |
| (4) Cash equivalent of 30 days salary for every completed year of service | 30,833 | (Average Basic * No Of Completed Yrs of service) | |
| Lease above is exempted | 30,833 | ||
