I left my previous company in Sep2011 and joined new company in oct2012.
1. I encashed my leave in Aug2011 for 58000 rupees. I thought leave encashment is non taxable. Now I got to know that the leave encashment during service is taxable but relief can be claimed under section 89. Now I am not able to figure out how much relief can I get and what is the procedure to avail that benefit.
2. While leaving my previous company, I paid 2.1lac against notice pay+service bond+training bond. Can I reduce this (or any partial) amount from my total salary to avail tax benefit?
Please help.