Skip to Content
Leave Encashment Calculator

Leave Encashment Calculator

Calculate leave encashment amount and tax exemption under Section 10(10AA)

Employee Details

Government Employee
Private Employee

Latest Update - Budget 2024:

• Exemption limit increased from ₹3 lakh to ₹25 lakh for private employees
• Government employees: Fully exempt
• Maximum 30 days leave per year can be encashed at retirement

Calculation Results

₹0
Total Leave Encashment
₹0
Tax Exempt Amount
₹0
Taxable Amount
Leave Encashment Formula:
Total Amount = (Basic + DA) ÷ 30 × Leave Days

For Private Employees, Exempt Amount = Minimum of:
1. Actual leave encashment received
2. 10 months average salary
3. Cash equivalent of leave salary due
4. ₹25,00,000 (current limit)

Section 10(10AA) - Key Points:

• Leave encashment at retirement/resignation is eligible for exemption
• Maximum exemption limit: ₹25 lakh (increased from ₹3 lakh in Budget 2024)
• Exemption available in both old and new tax regimes
• Earned leave cannot exceed 30 days per year of service