Leave Encashment Formula
Leave Encashment = (Basic + DA) ÷ 26 × Number of Earned Leaves
Tax Exemption Limits
| Employee Type | Tax Exemption | Condition |
|---|---|---|
| Central/State Govt Employee | 100% Tax-Free | कोई limit नहीं |
| Private Sector — Retirement | Min of: Actual, 10 months × Avg Salary, ₹25 लाख | Budget 2023 में बढ़ाया गया |
| Private Sector — Resignation | Min of: Actual, 10 months × Avg Salary, ₹25 लाख | 5+ वर्ष service पर |