LEAVE ENCASHMENT

encahment of leave during employment is fully taxable..
but if encashment of your leave at the time of retirement then:-
in cash of you are govt employees then it is full exempt.
but if you are not a govt employees then you can get exemption us 10(10AA)

for the amount of exemption
you need to take lower of following:-
1. amount actually received
2.last 10 months salary from the date of retirement
3.leave salary entitlement on the basis of maximum 30 days for every completed year of service
4. max limit of rs 300000

You can't just leave the encashment here and there because it has a lot of new things on doctoral dissertation service. I know that it's a lot harder for us to understand these things, but we will do it once we are done working on it.