Salary
Leave Encashment Calculator
Estimates your leave encashment payout and a simplified view of its tax-exempt portion.
Your details
₹
days
Estimated payout
₹88,767
Potentially taxable portion
₹0
45 days encashed at your last drawn salary comes to approximately ₹88,767. This is within the illustrative exemption ceiling.
This is a simplified estimate. Government employees get full exemption; private-sector exemption depends on the lower of several statutory factors (salary average, leave balance cap, and the ceiling) — a payroll or tax professional can give you the exact figure.
How this is calculated
Illustrative daily rate = (last drawn Basic + DA × 12) ÷ 365, multiplied by leave days encashed. This is a simplified convention — actual employer policy and statutory exemption rules can differ.
Source: Exemption ceiling shown is illustrative — private-sector leave encashment exemption rules involve multiple limiting factors; verify the current statutory ceiling.
Frequently asked questions
Is leave encashment always taxable?
For government employees, it's fully exempt. For private-sector employees, it's exempt up to a statutory ceiling and a few other limiting factors — anything beyond is taxed as salary.
Is leave encashment during employment treated differently from at retirement/resignation?
Yes — encashment while still employed is generally fully taxable as salary, unlike encashment at retirement or resignation, which gets the exemption treatment.