Calculate your leave encashment payout

Government employees: fully tax-free at any amount. Non-government: tax-free up to ₹25L lifetime (as of FY 2023-24, raised from ₹3L). Above that, taxed as salary income.

Three common events: (a) end of year (some companies cap carry-forward and force encash), (b) resignation, (c) retirement. Encashment during active service is also possible at some employers.

Typically only earned/privilege leave (EL/PL). Sick leave and casual leave usually lapse and cannot be encashed. Check your HR policy.

Most private companies use ÷ 30 (covering all calendar days). Some use ÷ 26 (working days only, matching gratuity formula). Government uses ÷ 30. Check your appointment letter.

No — those are paid leaves with their own policy. Leave encashment specifically refers to unused earned/privilege leave carried over.

Included in the Full and Final settlement. All unused earned leave accumulated up to the last working day is encashed at the final per-day rate.

No, if it's in your company's leave policy or appointment letter. Most companies cap accumulation (e.g., 30-45 days carry-forward) and auto-encash the excess each year.

You declare cumulative leave encashment received from all past employers in Form 16. ITR adjusts the exemption. Maintain old Form 16s to track lifetime utilisation.