Hi community,
What allowances come under special allowance? How the allowances are selected by the employer?
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Hi @Anisha
Special allowances are usually the bucket in the payslip where post allocation of funds in necessary components are over and then the balance is kept in special allowance.
usually, SA is taxable. If companies can create any other benefits for employees and split the amount would benefit employees in a long run to save tax.
So SA do not have any special characteristics it’s usually a component where post allocation balance amount is kept.
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Well Said Dinesh.
Regards
Arpana
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It is your discretion selecting what is a special allowance.
It should be the actual purpose to be selected by the employer to be fair. There are no steadfast rules in this regard.
Thank you
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