| Question And Answer | |
|---|---|
| Subject: | EXEMPTION OF LEAVE ENCASHMENT FOR THE TENURE EMPLOYEES OF CENTRAL AUTONOMOUS BODIES |
| Category: | Income-Tax |
| Querist: | SUGAM AGARWAL |
| Answered by: | Law Intern |
| Tags: | leave encashment, LEAVE ENCASHMENT EXEMPTION |
| Date: | July 26, 2026 |
We have some tenure employees some are for 3 months and some are for 6 months and rest are for 3 years. During the completion of the tenure of such employees they got some amount as leave encashment. No as a CABs we are treating as fully taxable for the tenure employees. We request you to guide for the further necessary action
Treatment appears to be correct because employees of Central Autonomous Bodies (CABs) are non-government employees for the purpose of tax exemption on leave encashment u/s 10(10AA) of the Income Tax Act, 1961.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org