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?
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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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