Free tool · Rules updated 28 Sep 2026
Leave Encashment Tax Calculator — Section 10(10AA)
Leave encashment at retirement or resignation is exempt up to the lowest of: amount received, ₹25 lakh, 10 months' average salary, and cash equivalent of unused leave (max 30 days per year of service).
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Leave Encashment Tax — common questions
Is leave encashment during service taxable?
Yes, leave encashed while you are still in service is fully taxable as salary.
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