Peculiar Situation - Leave Encashement

Dear Viraj Sir,

Exemption can be claimed only in respect of the income i:e where 15 leaves are being encashed  then under no circumstances salary equivalent to 28 leaves can be exempted, the maximum exemption that will be available is in respect of 15 leaves only.

Further, I think you are trying to interpret the sentence in isolation & not in the context - 

Sec 10(10AA)(ii)-

any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit at the time of his retirement [whether] on superannuation   or otherwise as does not exceed [ten] months, calculated on the basis of the average salary drawn by the employee during the period of ten months immediately preceding his retirement   [whether] on superannuation or otherwise, [subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit  applicable in this behalf to the employees of that Government] :

I think you are interpreting it by focusing on the words with yellow background but please appreciate the words written in pink, that is "Amount received" as this will not change even if you wish to calculate exemption in respect 28 leaves. So, it will not make any difference....

Amir,

As I understand it, "the general rule to be followed in all fiscal enactments is that where words used are neutral in import, a construction most beneficial to the assessee should be adopted."

However, if as you say there is no doubt, then there is no room for interpretation.