Central / state government employees, PSU employees under CCS rules, and similar govt-side staff get FULL tax exemption on leave encashment at retirement / death - no caps, no limits. The calculator confirms this and shows the gross encashment amount = net (no tax).
When to use this
Use for: central govt retirees (CCS, defence, railways), state govt retirees, PSU employees retiring under CCS-like rules. Confirms the full exempt status - no tax planning needed since exemption is total.
Frequently Asked Questions
Is private-sector leave encashment treated differently?
Yes - private gets the 4-limit calculation (max ₹25L exempt). Govt gets unlimited exemption. The disparity has been narrowed (private cap raised from ₹3L to ₹25L in Budget 2023) but still favors govt.
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