Section 10(10AA) governs leave-encashment tax exemption. Rules differ by employer type (govt vs private) and situation (retirement, resignation, death). The calculator picks the right rule based on your inputs and shows the exempt amount under that rule.
When to use this
Use when planning your exit from a job: estimate the tax-exempt portion of leave encashment, decide whether to encash now (in service) vs wait till retirement (in-service encashment is taxable; retirement encashment has exemption), help HR / payroll teams compute correct TDS on leave encashment.
Frequently Asked Questions
Is leave encashment during service exempt?
No - in-service leave encashment is fully taxable as salary. Only encashment at retirement / death / superannuation qualifies for exemption under Section 10(10AA). Plan your encashment timing accordingly.
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