Sir/ Ma'am, Do we have to leave a line after salutation like in the given picture or just start after the salutation without leaving a gap of 1 line ? Which is the correct format ?

Solution
Yes, leaving a line after salutation helps us identify different parts of the letter. 

https://www.meritnation.com/cbse-class-9/english/writing-section/formal-letters/studymaterial/11_7_833_4473_11087

For the correct format of a formal letter, you can refer to the above link. You can also look at sample questions with solutions to enhance your understanding.

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Yes you should leave a line after the salutation
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