Allowances exceeds basic pay
kevin (articleship) (111 Points)
14 August 2013
Mihir
(Wealth Manager)
(5293 Points)
Replied 14 August 2013
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.