Income tax

In my opinion it will be taxable in the year in which it receives i.e. F.Y.2013-14

other advice are welcome

Income is taxable under the head "Salaries" on Accrual or receipt basis whichever is earlier. In my opinion in this case Leave Encashment benefit accrues to employee after his retirement in F.Y.13-14 and also he has received the same in same year. So it will taxable in F.Y.13-14

Completely agreed with Mr. Shendye and Khushbu it will be taxable in the FY 13-14

It is taxable under the head of Income from salary in the A.Y. 2014-2015.