LEAVE SALARY CALCULATOR

The employees gets some numbers of leaves either 1 or 2 per months as leaves. If the employee doesn't take these leaves, they are accumulate and one can take the payment on his retirement/superannuation for these leaves. These leaves are paid by the employer to the employee for his work done on leaves. This payment is called leave salary.


This leave salary is fully taxable in income tax point of view. However, there is some concession in the leave salary in the section 89(1) of income tax act. The tax ability can be divided in three parts of the leave salary which is as under.

Tax liability of government employees in case of en cashing leave salary in continuation of job:- Fully taxable but some relief under section 89(1) of income tax act. 

Tax Liability of government employees in case of en cashing leave salary on retirement/superannuation of job:- Tax free under section 10(10AA)i of income tax act.

Tax Liability of non government employees:- Partially or fully exempt from income tax with case to case under section 10(10AA)i of income tax act.

So calculating the real amount of leave salary is very complex, and it needs a lot of calculations. So there is an excel based calculator for leave salary which is very beneficial to work and it is totally free.
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