Quick Summary: Leave Encashment Tax Calculator

Leave encashment received at the time of retirement or resignation is tax-exempt under Section 10(10AA). For non-government employees in FY 2026-27, the maximum statutory exemption limit is ₹25,00,000. The actual exemption is the lowest of four factors: the statutory limit, actual amount received, 10 months' average salary, or the cash equivalent of unutilized leave.

How to use the Leave Encashment Tax Calculator

  1. Enter Salary Details

    Input your 10-month average Basic Salary and Dearness Allowance (DA).

  2. Input Leave Balances

    Enter your total completed years of service, total leave entitlement, and leaves already availed.

  3. Enter Amount Received

    Input the total leave encashment amount provided by your employer.

  4. View Taxable Portion

    The tool calculates the lowest of the 4 statutory conditions to show your exact tax-free and taxable portions.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.