Query- Other Allowance reg.

Posted on February 27, 2012 by SRRF
Dear SRRF Dialogue members,

We have received a new query under Other Allowance reg. from, Mr. D. Sagayadoss

”Our Organisation revised our new pay scale from 01-01-2012 with the following allowances:

1. Dearnes allowance
2. House rent allowance
3. Other allowance

my query is what are the allowance included in other allowance like travelling allowance ect.? ”

Pl.Clarify

Looking forward to your response.

Thanks and regards,
Tanvi Dogra
SRRF Dialogue, Coordinator

____________________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

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5 Responses to Query- Other Allowance reg.

  1. Madhwaraj.B.S says:
    February 29, 2012 at 10:46 am

    Dear Members.

    The Gross Salary of an employee will have breakup keeping in view the following:

    1.Basic Salary ( for social securities like PF, Gratuity etc)

    2.House Rent Allowance, Leave Travel Allowance, Food coupons (sodexo etc), transport/conveyance allowance, medical allowance etc (for Income tax purpose)

    3.And the balance salary if any will be shown as Other Allowance etc.

    Thus it is clear that each component of salary has to be decided with respect to some meaningful purpose.

    Regards

    Madhwaraj.B.S
    Senior Accountant

    CDD Society
    621, 5th Main, OMBR Layout
    Banasawadi P.O
    Bangalore 560 043
    Website: http://www.cddindia.org

    Please note our upcoming DEWATS Engineers\’ Training from 16 -21 April 2012!

  2. B V Soma Sastry says:
    February 28, 2012 at 5:06 am

    Dear Sagayadoss,

    Greetings from Hyderabad!

    I am of the opinion that an organization can include as many allowances as possible and arrive at a basic to gross ratio. But more the allowances in the salary structure, the more would be the taxable income of the staff.

    Eg. Telephone allowance will be taxable if it is given to staff as allowance. If you reimburse the same to staff against bills submitted by staff, the same can be avoided.

    This is my understanding of allowances.

    Thanks and regards,
    B V Soma Sastry

  3. Asif Zaidi says:
    February 28, 2012 at 5:04 am

    Dear sir

    I have another query about the allowances that is there any relation between allowances and the basic salary or any limit or it can go to any percentage to the basic salary?

    best regards
    Asif

    • s.srinivasan says:
      February 28, 2012 at 6:16 am

      Sir
      you can add any number of allowance.from Income tax angle if the allowances are covered as per section 10 (14) thy are exempt, other wise the employee has to pay the tax. and so there will not be any benefit to the employer and thee employer

  4. Valan Caritas says:
    February 28, 2012 at 5:03 am

    Dear Sir,

    As per the Income Tax Act all the allowances are taxable and the reimbursements are not taxable .

    You can include any allowances to other ,If you are saying the allowances it is taxable.

    Regards,
    Valan

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