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

[amiths]

@nandakumar You can refer to this post for more details

Leave encashment calculation and amount exempt in income tax

Leave encashed at the time of retirement or resignation:- Leave encashment received by Central or State Government employee at the time of retirement or resignation is fully exempt Leave encashment received by legal heirs of deceased employee is fully exempt Leave encashment received by Non-Government employee is exempt based on the computation provided under Section 10(10AA)(ii) and balance amount if any is taxable as ‘income from salary’ Computation: A. Leave Encashment Received B. Least …