Leave encashment

 

Today we will talked about Leave encashment

In case employee have not taken leaves and have opted for encashing those leaves, employer would be paying some amount as leave encashment. The amount so received on account of encashing the leaves not availed would be liable to tax under head “Income from Salary”.

Encashment of leave during tenure of service of an employee, is fully taxable and no exemption is allowed.

Leave encashment of accumulated leave at the time of retirement whether on superannuation or otherwise received by any other employee is exempt from tax to a certain limit. In such a case, the least of the following shall be exempted:-

1. Leave encashment actually received
2. 10 months “average salary”
3. Cash equivalent of unavailed leave calculated on the basis of maximum 30 days leave for every year of completed service.

Amount specified by the Govt i.e. Rs. 3,00,000

Link to download the sample file

https://drive.google.com/file/d/164vhM-OxRAqnhg4yjT-6_1oCTneYlBrN/view?usp=drivesdk

Maharashtra Profession Tax

 Hi Friends..

I have published One video on Maharashtra profession tax, you will information about Maharashtra PT payment which include some information and the process of PT payment and PT return.

https://youtu.be/4nvxVLYkhBM

Salary Reduction Letter

LETTERHEAD

 

 

Template - Salary Reduction Letter

 

 

[Date]

 

[Employee name, job classification, Number]

[Designation]

[Address]

 

RE: Reduction of Salary

 

Dear ________,[employee Name]

 

                         In accordance with [section/Article; Policy/Contract], this is the notice by the [Company name] that, [effective start date] your salary will be reduced from old salary to new salary.

 

Salary Reduction is made to save the resources of the organization during difficult economic periods ___________________ regarding the Notice of Intent to Take a Salary Reduction (in lieu of reason) dated_____________. Reviewer ______supports the salary decrease.

 

In accordance with [Section/Article- Policy or Contract], you will be given a salary reduction for Rs.________, equivalent to [#] days without pay on [date] for [reason] as described in the Notice of Intent to Take a Salary Reduction (in lieu of a reason) dated ___________. 

 

 

You may consult [Section/Article – Policy or Contract] for your appeal rights.

 

                                         We appreciate all of your hard work, and we know we will have your support as we all strive for continued business success. Should you have any questions, please don't hesitate to speak with your manager or contact human resources.

 

 

Sincerely,

[Name of Supervisor]

[Title]