FY 2025–26 / AY 2026–27
Leave encashment exemption
Estimate exempt leave pay at retirement or resignation.
Reviewed 15 October 2026 · calculations run in your browser.
How the calculation works
Non-government retirement relief = least of receipt, remaining ₹25 lakh lifetime ceiling, 10 months’ salary, and eligible unused leave value.
What you need to enter
- Leave encashment received
- Average eligible monthly salary (last 10 months)
- Completed years with this employer
- Leave entitlement per year (days)
- Total leave already taken (days)
- Exemption claimed in earlier years
- Central / State government employee?
- Encashed while still in service?
Assumptions and limitations
FY 2025–26. Salary means eligible basic, DA and turnover commission. ₹25 lakh aggregate exemption ceiling for non-government employees. In-service encashment is taxable.
Only completed service years count; entitlement is capped at 30 days for each year. Deduct leave already availed. Salary uses the eligible ten-month average. Central/State government retirement encashment is treated separately; a PSU is not automatically government employment.