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Leave Encashment Calculator
Estimate leave encashment as (basic + DA) / 30 × unused days. Tax exemption is not auto-applied.
Last updated 2026-09-17
Encashment (before tax)
₹40,000
Uses / 30. Exemption not applied.
How it works
Amount = (monthly basic + DA) × days / 30. Government vs private-sector tax exemption under section 10(10AA) depends on facts — not computed here.
How to use this calculator
- Enter the inputs shown above (amount, rate, tenure, income, or other fields).
- Read the live results — they update as you type.
- Check the formula, worked example, and assumptions on this page before you decide.
Formula
Amount = (monthly basic + DA) × days / 30. Government vs private-sector tax exemption under section 10(10AA) depends on facts — not computed here.
Worked example
Basic+DA ₹60,000 and 20 days: ₹40,000 encashment before tax.
Reading the result
Treat the output as a planning figure. Compare it with your sanction letter, payslip, or GST invoice rather than treating it as a filing or a loan offer.
See also: calculation methodology and disclaimer.
Frequently asked questions
For government employees, leave encashment at retirement can be fully exempt. For others, section 10(10AA) has a limit and conditions. Do not assume the figure is tax-free.
Assumptions and limits
- Uses a 30-day month. Some employers use 26 working days — change the interpretation accordingly.
- Tax exemption for non-government employees is limited and fact-specific. This tool shows the cash amount only.
Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.