oh wait. u talking about leave encashment post retirement?
for govt employees it is exempt.
For non-govt employees, the amount exempted on retirement is least of the following: a) actual leave encashment amount b) 10 months' average salary (basic salary, dearness allowance and commission based on fixed percentage of turnover achieved by the employee average salary drawn in past ten months immediately before retirement) c) Cash equivalent of unutilised earned leaves (leave earned cannot exceed 30 days for each year of service rendered to the employer) d) Rs 3 lakh - the maximum amount specified by the government.