How should we calculate earned leave? on gross salary or on basic part?

Dear Ritika and other members of the forum,
This is my 1801 contribution in this forum. In fact I wanted to thank you all in the eve of 2014 but regret to see counter responses / comments and appreciations to such counter responses / comments even after the answer is given by me with the help of provisions of Law giving it verbatim.
In my answer to the Queriest Ritika, I have not only given the provisions of Law but I asked her to be in the shoes of employee and questioned her whether she will accept the leave salary at basic only. Still there is a different view to my answer which is appreciated by Queriest Ritika.
I don't say that there should not be any different view. But the different view should have some supporting at least when previous response / answer is with the help of supporting.

Dear Moderators / Administrators of the Forum,
It would be appreciated, instead of removing certain posts from the threads if you bring the discussions to correct conclusion.

Dear Mr Keshav,
Happy New Year Sir !
We always have appreciated the way you have given response to queries.
I am new to Hr System,so it takes some time to understand laws n provisions.
Still i am sorry if i have hurted you from my responses.
Regards,
Ritika

Dear Ritika ji,
Thanks for your New Year greetings for which I reciprocate.
I will not blame you. You are the queriest. You initiated the query and the members have to give answer or solutions to it. Our is an open forum in which any member can give his views. The views given by any member may or may not be correct.
But when any member gives the answer which apparently seems to be correct logically and when it is with some supporting, one should accept it unless he has supporting contrarily to it .
Moderators should play their role to bring any discussion to correct conclusion which is not being done unfortunately and therefore a member like me feels that he is just wasting his valuable time.

Dear Seniors,
kindly advice in following case....
MONTHLY gross SALARY (eg)
BASIC 3000
DA 14500
HRA 2000
CONV. ALLOW 1500
PERS ALLOW 300
INCENTIVE 6000
In our office, leave encashment is given on Basic and DA only.
and if employee on leave means, No deduction is made. Only Incentive amount is deductable on his leave.
Kindly advice, Is the above procedure is correct or not.
Regds...ARM