Allowance

All the allowances given to an employee form part of salary. But any allowance not shown separately will not be treated as such allowance is given as salary. For example, if A Ltd. pays salary of Rs. 20000/- to an employee and the structure of his salary is as follows --

Basic salary 8000/-, DA 5600/-, HRA 3200/-,  TA 1600/-, LTA 1000, Festival Allowance 600/-