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I have changed my job from a govt company to a private company. At the time of final settlement in the govt company, I have got some money as leaves encashment. Am I liable to pay income tax on that.

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For Govt Employees receiving Leave Encashment as part of retirement or separation; there is no tax applicable for the leave encashment. Refer Income Tax

  • But according to section 10AA taxguru.in/income-tax/… this is tax free for govt employees after retirement. But it is nowhere mentioned whether it is taxable or taxfree in case of resignation – Arpit Aggarwal Aug 7 '17 at 4:20
  • @ArpitAggarwal Sorry you are right. Updated the answer. – Dheer Aug 7 '17 at 6:24
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    But here its not clearly mentioned whether it is tax free even in case of resignation also. – Arpit Aggarwal Aug 7 '17 at 6:26

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