what is the meaning of leave in cashment
Answers
Answer:
Leave encashment refers to an amount of money received in exchange for a period of leave not availed by an employee. Encashment of accumulated leave can be availed by an employee at the time of retirement, during the continuation of service or at the time of leaving the job. The leave encashment policy varies from employer to employer. Some employers pay for the unavailed leaves in the next calendar year. Some let the employees carry forward the balance leaves in a year to the next year. And the employer pays for the unavailed leaves at the time of leaving the job. Income tax treatment of the amount received towards leave encashment depends on type of employment - private or government - and time of - in service or at the time of retirement.