meaning of salary

HRA is a cash benefit, so the cash received or receivable both should be included. The salary on due basis wil be higher, which enables employee to claim higher 40% or 50% benefit....

But RFA is something which the benefit does not result in cash flow to employee.... The value of RFA is assumed to be constant during the FY, not depending on how much the employee has actually reeived in cash or is yet to receive for that year.... Hence it may be unjust to tax him for something which he has not earned/received during the year, by including arrears of previous years, and advances which are his remuneration for next year's services......

Please wait for others' opinion also.... 

Dear Jitendra & G.K.,

I should share this thing what my teacher taught me as a "First Lesson" of Income Tax -

"Don't try to see Logic specially in computation provisions, since it is not a science"

  GoGGGGoGg

Yes amir bhai, agree with u.....

Even Einstein is said to have admitted his inability to understand taxes....

But we are not looking for logic, we are trying to gauge some intention.... :)) He he....

nice Mr GK and Amir for sharing the views