Hi Niladri
How ur paying leave encash through IT-0416 ,0r 0015
Please find the below config for leaveencash
Also check SAP Note 374197
Leave Encashment
Model Wage Type MLE0
Setting for Indirect Evaluation - A in V_T511
Setting for RAP Indicator - Cessation Payment in V_T7INA9
Setting for Tax Code - SLEA in V_T7INT9
Set the default amount in V_T510
Check below link
http://help.sap.com/erp2005_ehp_05/helpdata/en/d7/7ca4e2cd234c0a92c798091d49afbb/content.htm
Thanks
Satish