![]() It is a fully taxable component of your salary.īonus: It is a performance based incentive given to the employee by their employer. Special Allowance: Special allowance is a fixed amount that is given to employees over and above the basic salary in order to meet certain requirements. LTA is an important component of the salary of the employee as it is eligible for income tax exemption as per the Income Tax Act, 196. Leave Travel Allowance (LTA): It is a type of allowance which is provided by the employer to his employee who is travelling on leave from work to cover his travel expenses. It is a fully taxable component if you do not stay in rented property. House Rent Allowance (HRA): It is a monetary benefit given to employees by companies for expenses related to rented accommodation. However, it is usually determined by taking an employee’s designation, experience & industry of work into account. Basic Salary is taxable & usually 35-50% of the total gross salary. Below is a list of the most common salary components.īasic Salary: It is a fixed base part of an individual’s compensation package. The salary components vary with different employers. ![]() It is usually paid at the end of each month. Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. ![]()
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