Taxability of emoluments ontechnical resignation
PRIYA
(Querist) 29 January 2013
This query is : Resolved
Sir, I worked with Central Government for 15 and half years and now I have joined a central autonomous body after submitting technical resignation. I want to know whether amount received for EL Encashment is taxable or not? I cannot transfer my leave account to the new organisation as per their recruitment rules. Please clarify.
VARUN MAHAJAN
(Expert) 27 February 2013
Taxability of leave encashment on resignation: As per the IT Act, the provisions applicable to retirement will similarly apply to resignation. It uses the words 'at the time of his retirement whether on superannuation or otherwise' and, based on judicial precedents, the word otherwise can be interpreted to include resignation.
Leave encashment of govt employees is exempted. u/s 10(10AA)
