Section 89(1) relief for leave encashment while in service; retirement encashment exempt under section 10 clause. Relief under section 89(1), read with rule 21A, is admissible for amounts received on encashment of leave salary while an employee remains in service; encashment on retirement is exempt under clause (10AA) of section 10 as inserted by the Finance Act, 1982, effective from April 1978.