received

(2) (1)
Tllustration The

Service
14,40,000
Periodof
Salary
4.41:
at
the as E,
leave
time an
employee
salary
of
retirement
from
of
his XYZ
(p.m.)
employer.
Pvt.
Ltd.
The
retired
following
from
information the
company

is
provided on
30.
l1.2023.
by
the
emplovee: At
the
20 time
years
of
& his
8
retirement.
nonths
90,000

he
 102
(7) (6) (S) (4) (3)

titlement
Leave encashment
AverageBalance Leave Leave

availed
unavailed
salary
f
while
for
the leave
in
months service
at
the
oftime
February,
of Simplified
retirement

2023
Approach
to
November,

to
Income
2023
Tar

|12
month

for
servIce
yearevery
of

completed months
months
l6 |4
{1440,000
¿88,000
Chap.

4
 Allowance
Dearness
months.
Last
,000 increment Salary
Basic
0,00,000
pensionHis Ilustration
He
on as submits
count
ismmuted
was 4.42:
s
the
determined X
y of following
pension.
lated was
1.7.2023
Z10,000
w.e.f. 100%
1,00,000employed
for
t at of
information:
In
60,000 Basic
addition
leave p.m.
with
Salary (at
ar of top.m. the ABC
240
(40% time
5 days. this, He
Ltd.
hegot of of
He retirement) He
g received 50% which
was retired
entitled of forms
athe
that gratuity part w.e.f.
pension
he to
40 of 1.2.2024
is salary
days of
not commuted
ed24,00,000
leave for after
retirement
for completing
der w.e.f.
every and
leave
nt year1.3.2024 benefits).
a
ncashment of service
of
service. and
ity
received of
24
amounting
Act. years
a
sum
and
to of 4
 = 24,U0.
Problem 10
R an employee of XYZ Ltd. retired from service w.e.f.
1.1.2020 after serving for l6
retirement he received a sum of E50,000 as leave encashment tor unavailed leave of 300years and 7 months. At the time of
leave for each year of completed service. He was getting a salary of E5,000 per days. He was entitled to 40 days
received increment of 500 w.e.f. 1.7.2019. month at the time of the reirement. He
Compute the amount of leave encashment exempt from tax.
t year.
commuted
leave part andProblenm11
of 5Shri
pute for
retirement months.
of each
for A.K.
gross year
R2,70,000. Gupta
He
benefits)
of had
t.
come was
service, been
Inemployed
fromaddition getting for
he the
aries also
last a in
received tosalary a
this four factory
of
Shri years.
he of
,00,000received 23,000 in
Gupta Faridabad.
His
per
a
for for pension
the gratuity month
ashment He
ent was
retired
{4,00.000of and
determined
a
of dearness on
year
earned 1.1.2020
-21, and @
allowance
leave 9,000
as after
ing ofpercompleting
entitlement 12 p.m. of
months {2.000
and
he
is 3/4
during per a
not of
portion service
vered 30 month
the days of
previous (forming of 26
under earned it years
was