Tax Liability on Leave encashment:

Government servants while retiring, whether on Voluntary Retirement or Superannuation or Resignation, can en-cash maximum of 300 days earned leave at their credit. 

Leave encashment for total leave earned during DoT period is fully exempt.

Leave encashment for the leave earned during PSU service is exempt to the extend of Rs.3,00,000/- u/s 10(10AA) of the IT Act. Leave encashment beyond Rs.3 Lakhs during Service in PSU is taxble and this should be included in the taxable income while calculating Income tax for assessment. 

ITax authorities have issued notices to a few pensioners retired during 2018 regarding taxability of Leave Encashment.

To facilitate to give reply to these notices GM Fin is requested to issue a certificate on Leave Encashment giving the break up of DoT period leave and MTNL period leave.

Please CLICK HERE to view the format of the Certificate to be issued by Zonal Offices.

FOR THE FINANCIAL YEAR 2022-23 -- Please CLICK HERE.

IMPORTANT TRANSACTIONS TO BE TAKEN CARE OF WHILE FILING RETURNS.

FOR THE FINANCIAL YEAR 2021-22 WITH OTHER DETAILS -- Please CLICK HERE.

BENEFITS UNDER DIRECT TAXES FOR SENIOR AND VERY SENIOR CITIZENS - INSRUCTIONS BY CBDT.

FOR THE FINANCIAL YEAR 2020-2021 (OLD AND NEW) : Please CLICK HERE.

HOW TO FILE ITR-1 FOR FY-2020-21 ? -- DETAILED INSTRUCTIONS BY CBDT.

RULES APPLICABLE TO PENSIONERS FOR ASSESSMENT YEAR 2021-22. -- INSTRUCTIONS BY CBDT.

IMPORTANT ORDERS ISSUED ON INCOME TAX :

1. Refund of Excess TDS - CBDT Circular dated 27/04/2011.

2. TDS on Leave Encashment - MTNL Circular Dated 29/08/2012.