Free tool · Salary
Leave Encashment Calculator
Calculate the encashment value of your unused leave days from your monthly salary (Basic + DA) — (Basic + DA) ÷ 30 × leave days.
Formula: (Basic + DA) ÷ 30 × leave days.
Leave encashment
₹90,000
Taxability varies (government vs private, on-retirement vs in-service) — check the exemption under Section 10(10AA).
Frequently asked questions
How is leave encashment calculated?
A common method is (Basic + DA) ÷ 30 × number of unused leave days. Your employer’s policy may differ.
Is leave encashment taxable?
It depends — government employees are fully exempt; for others, exemption under Section 10(10AA) on retirement is capped. In-service encashment is generally taxable.
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