is that normal if person getting allowances more than value of his basic pay..for example if person's basic pay is rs. 40000/-p.a and getting allowances of rs. 65000/- p.a..
Yes, it can happen. Basic salary is of course taxable. But allowances can be fully taxable, partly taxable and fully exempt. So sometimes the employer gives more partly taxable or fully exempt allowance to benefit the employees.
Leave a Reply
Your are not logged in . Please login to post replies
CAclubindia
