Encashment of el on technical resignation

Ashok K Gupta (Querist) 18 August 2017 This query is : Resolved
Learned Members
I am an employee of Autonomous Body under MHRD. We are equally treated as government employee. I have applied through proper channel to some other Autonomous Body under MHRD. Now I have tendered the Technical Resignation upon my selection to other AB. I have accumulated approx leaves of 180 days. As per the rule, I shall be encashing all the leaves at my credit and transferring my gratuity to other AB, which is in line with the available provisions.

Now the glitch is the pinpointing of my Account Officer, who says the receipt of amount towards encashment of EL is taxable, whereas I have come across with the several information citing that u/s 10(10AA) the leave encashment of government employees is exempted. I dont find the logic of taxing, when rule is clear on the issue.

Anyways I would appreciate if you could enlighten me on the issue before its escalation.

Warm regards

Ashok K Gupta

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