Leave Encashment Calculator India
Calculate leave encashment amount and tax exemption. Budget 2023 raised retirement exemption to ₹25 lakhs.
Last updated: June 2026
Based on Indian Income Tax rules — Budget 2023 ₹25L exemption
Leave Encashment Amount
₹57,692
Tax Exemption
₹57,692
Taxable Leave Encashment
₹0
Tax Payable
₹0
Net Amount After Tax
₹57,692
Exemption breakdown (minimum of):
- Actual received: ₹57,692
- 10 months' salary: ₹5,00,000
- Statutory limit: ₹25,00,000
- Exempt amount applied: ₹57,692
Private sector formula: (Basic ÷ 26) × 30 days = ₹57,692
Government formula: (Basic × 12 ÷ 300) × 30 days = ₹60,000
Based on Indian Income Tax rules — Budget 2023 raised retirement leave encashment exemption to ₹25 lakhs. Encashment during service is fully taxable. Verify calculation basis with your employer HR policy.
About Leave Encashment Calculator India
Our free Leave Encashment Calculator computes encashment amount for private and government sector formulas, with tax exemption under Budget 2023's ₹25 lakh limit.
Choose during-service (fully taxable) vs retirement/resignation (partially exempt). See exemption breakdown and net after-tax amount.
No signup, runs entirely in your browser — ideal for IT employees planning resignation.
Read the full guide: Leave encashment India — rules, tax exemption & calculation
When Should You Use the Leave Encashment Calculator?
Resignation planning
Estimate leave encashment before putting in notice.
Tax planning
See if encashment falls within ₹25L exemption at retirement.
HR negotiation
Verify company calculation against standard formulas.
Full and final
Understand tax on F&F settlement components.
Government vs private
Compare ÷26 vs ÷300 day basis formulas.
Frequently Asked Questions
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