Leave encashment tax rules for AY 2026-27: How much exemption salaried employees can claim
Economic Times
Salaried folks can get tax relief on leave encashment when they retire. Government workers get it all tax-free, but private sector employees have a limit of Rs 25 lakh. Suresh Surana said, "the amount paid by his employer at the time of his retirement...is tax exempt." This exemption depends on earned leave and salary.