Calculating Leave encashment based on last drawn basic pay or last drawn Fixed gross salary, which is correct?

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Calculating Leave encashment based on last drawn basic pay or last drawn Fixed gross salary, which is correct?
And till what limit it is tax exempted

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Leave enhancement is calculating for last 10 months average basic.
Calculation is Average basic for last ten months/30*no of Leave enhancement days.

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Leave encashment is always on last drawn basic salary

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Hi guys, please check as per law committed for the calculation.

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Hi Guys,

Please enlighten me regarding Tax exemption on Leave encashment for the below (Private Sector).

  1. Leave encashment after resignation
  2. Leave encashment at the time of retirement
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Thanks for the confirmation

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@nandakumar You can refer to this post for more details

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Hi Nanda

Leave Encashment is based on basic Salary and overall limit for the whole fin year is 3 lacs whether partly and wholly

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