Is leave encashment taxable?

Leave encashment received during employment is generally taxable. At retirement or resignation, certain exemptions may apply depending on employer type — consult a tax advisor for specifics.

Leave Encashment Calculator

Free Tool

Leave Encashment Calculator

Estimate the payout for an employee's unused earned leave.

Basic + DA (monthly)

Unused earned leave days

Working days per month (company policy)

Result

Per-day wage₹1,154

Estimated encashment₹17,308

FAQ

Leave encashment — frequently asked

Leave encashment is typically calculated as (Basic + DA) divided by the company's standard working days in a month, multiplied by the number of unused earned leave days.

Track leave balances automatically

Texora HRMS tracks accrual, carry-forward, and encashment for every leave policy you configure.

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Leave Encashment Calculator

Result

Leave encashment — frequently asked

Track leave balances automatically

Preparing your workspace

Leave Encashment Calculator

Result

Leave encashment — frequently asked

Track leave balances automatically