Income Tax Act 1961 · Sec 10(10AA)(ii)

Leave Encashment Exemption

Least-of-four test for leave encashment received on retirement or resignation. For AY 2026-27 (FY 2025-26).

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Your details

Employee type Government employees are fully exempt. Private / PSU / bank employees use the four-limit test.

Actual leave encashment received (₹)

Date of joining

Date of leaving

Completed years of service Auto-filled from the dates above (full completed years only). Edit if needed.

Unutilised leave balance

Leave days

Balance used: 0 days. The Act caps recognised leave at 30 days per completed year.

Average monthly salary — Basic + DA (₹) Average of the last 10 months before exit. Basic + DA only — exclude HRA, allowances and bonus.

10(10AA) exemption already claimed in earlier years (₹) Lifetime cap is ₹25,00,000 across all employers. Leave as 0 if this is your first claim.

Employer's exempt figure — optional If your Form 16 / F&F shows an exempt amount, enter it to compare.

Exempt under Sec 10(10AA)

₹0

Taxable as salary

₹0

Employer's exempt figure—

This calculator's exempt figure—

Difference—

Monthly Basic+DA implied by employer's figure—

✓ Updated for Finance Act 2025 · AY 2026-27 · as on 07-Jul-2026