Leave encashment exemption under sec 10 (10aa)
9 months ago
I worked for a Private (non government) Indian employer for 10 years and recently resigned. In the last 3 years of my job, I was working for the same Indian employer but from overseas (USA). I recently got a leave encashment for the balance leaves that I had accumulated in the total tenure of 7 years when I was actually working from India. Though I was on payroll of the Indian employer, I did not receive any salary in India in the last 3 years when I was in USA. The leave encashment amount was around 1,20,000 which is well within the 10 months average salary (basic+DA)
Can I claim the leave encashment as exemption under sec 10(10aa) even though I did not actually receive any salary in India In the last 10 month prior to my resignation?
If you were working abroad, then you would have paid taxes abroad. Hence, you cannot claim leave encasement as exemption under section 10aa of the Income Tax Act
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