Tibetans living in the region believe that this could be another case of self-immolation in protest against the Chinese rule in Tibet, they added.
The charred remains of the youth were first noticed by a Tibetan passerby, who immediately told a friend about it and the latter informed the office of the Tibetan Youth Congress and Dawa Rinchen, the Dharamshala Tibetan Settlement Officer.
The police were alerted by Rinchen subsequently.
Sources said the place from where the remains of the young man were found was known as Lhagyal Ri, where the Tibetans performed incense ceremonies.
The Deputy Superintendent of Police (Headquarters), who visited the spot, said a forensic team had been summoned to examine the remains of the youth and the spot.
Sources said the police found a red bag containing an umbrella, around Rs 800 and a Tibetan national flag from the spot.
As the news spread, a huge crowd gathered at the spot by evening.
While many Tibetans living in the area suspected it to be another act of self-immolation, the police refused to comment before getting the post-mortem report.
More than 150 Tibetans have set themselves ablaze in the last two years to protest against the Chinese rule in Tibet. While most of these cases have been reported from Tibet, two such incidents took place in India.
A Tibetan youth, who had committed self-immolation at Varanasi, Uttar Pradesh around two weeks ago, was recently cremated at Mcleodganj by the Tibetan Youth Congress. Another Tibetan youth, who had committed self-immolation in Delhi, was also cremated at Mcleodganj.