Mishra retired from service on 1st November, 2020 after serving 20 years and 8 months. He received ₹5,00,000 at the time of his retirement by encashing his unavailed leave. He furnished the following details at the time

(i) Computation of Taxable Leave Encashment if Mishra is a Government Employee Particulars Amount (₹) Leave Salary Received 5,00,000 Less: Exempted u/s 10(10AA) (5,00,000) Taxable Leave Salary Nil (ii) Computation of Taxable Leave Encashment if Mishra is Non-government Employee Particulars Amount (₹) Leave Salary received 5,00,000 Less: Exempted u/s 10(10AA) a) Actual amount Received 5,00,000 b) Statutory Limit 3,00,000 c) 10 Months average salary [( (10000 x 7) + (9000 x 3) ) + (60% x 4000 x 10) / 10] x 10 = [(70000 + 27000 + 24000) x 10] / 10 = ₹1,21,000 d) Cash Equivalent of unavailed leave @ 30 days for each year of completed service (30 x 20) - 450 = 150 days (1,21,000 x 150) / (10 x 30) = ₹60,500 a/b/c/d whichever is less (60,500) Taxable Leave Salary 4,39,500 Note: Commission is not considered while calculating 10 month average salary as the commission is fixed and not based on turnover.