I would like to know whether the amount received at the time of retirement, on the leave encashment, is Taxble? If yes, to what extent?

Admin’s Response:

As per rule 3(vi)(f) of Income Tax Rules 1962, salary includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called from one or more employers, as the case may be, but does not include lump-sum payments received at the time of termination of service or superannuation or voluntary retirement, like gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments.