Treatment of pl encashment on retirement
Ashok Kumar Sharma
(Querist) 02 May 2018
This query is : Resolved
Dear Sir,
I have retired from PSU Bank job on 31.03.2018. Amount of PL Encashment has been paid/credited to my account on 03-04-2018. Is this amount taxable in the FY17-18 or FY18-19. However my Bank has deducted tax on this amount in FY17-18. Please clarify.
Thanks & Regards,
Ashok Kumar Sharma
P. Venu 
(Expert) 03 May 2018
Have you cross checked the matter with the Bank?
Ashok Kumar Sharma
(Querist) 03 May 2018
Yes sir, my income-tax register include the amount of 240 privilege leaves encashment as "PL Retiree" in the salary of march 18 month whereas the amount has actually been paid in April 18 month. (Retirement date 31-03-2018). Priviledge leave upto 270 days can be accumulated by an employee during service period, out of which 240 is encashed on the date of superannuation/ retirement.
I have retired on attaining superannuation age.
T. Kalaiselvan, Advocate
(Expert) 03 May 2018
In my opinion, though the employer has deducted the taxes in the previous financial year, you can reflect the same in the next financial or assessment year since this income was been credited to your account on the next AY only. You may file the returns on the basis of the certificate issued by the bank and actual credit to your account.
Guest
(Expert) 03 May 2018
You have not given the true picture of the gross amount of PL and the amout of TDS deducted by the bank. However, encashment of EL/PL at the time of retirement is exempt from tax, but subject to certain conditions and only up to limit of some specified amount. PL beyond the specified limit is taxable. You may better check the status of TDS from your bank.
Kumar Doab
(Expert) 03 May 2018
The certificate must have been supplied to you.
The 30 days balance is still pending!
Guest
(Expert) 04 May 2018
Vague and irrelevant advice of Mr. Kumar Doab, a fake expert with unreal name. He always tends to confuse the querists with his intentionally wrong & misleading advice.
So, the querist, Mr. Ashok Kukmar Sharma would be justified to ask Mr. Kumar, which certificate and under which law he must have been supplied by the employer along with encashment of PL, when the due date for supply of the TDS certificate on prescribed Form 16 is not yet expired.
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