Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Salary break-up

517 views

Save Share

Join Us Follow Us Add as Source

Harshad Desai

Sr. Manager - Accounts

21 Points Posted on 20 April 2015

My Company is giving salary break-up as under:

Basic - Rs.25000

HRA - Rs.10000 (40% of Basic)

Conv. Allow. - Rs.800

Medical - Rs.1250

Sp. Allow. - Rs.45000

In the above break-up, my question is as per any law prevailing in India, can Sp. Allowance or any other nomenclature's amount can exceeds Basic salary?

Replies (1)

Varma

Senior Process Executive

248 Points Posted on 27 April 2015

Special allowance (Other allowance etc) – This is the part which makes up for the remainder part of the salary. It is usually not bigger than the basic salary. This is the part which actually cannot be treated as any other constituent of the salary. This part of the salary is usually completely taxable.

Regarding special allowance there is no any rule as any % for special allowance.But in some cases special allowance is more than Basic salary.