Leave encashment is taxable under income tax rules, except in specific cases. For government employees, it’s fully exempt. Private employees get exemptions under Section 10(10) of the Income Tax Act. Example: If you receive ₹5 lakhs as leave encashment, tax exemption applies based on tenure and limits. Contact (+91 8882323267) Taxcellent today for Trademark Registration Near You. https://taxcellent.in/leave-encashment-taxability-with-example-taxation-rules-you-need-to-know/