Accountancy Forum

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can someone please explain this a layman language? what i have gathered is that if we give something to an employee as dearness allowance, that will not be added to taxable income, i got it right??

“basic salary” means the pay and allowances payable monthly or otherwise, but
does not include -
(i) dearness allowance or dearness pay unless it enters into the
computation of superannuation or retirement benefits of the employee
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please koi explain kar sakta ha isko???

Dear I can say just that dearness allowance is a part of taxable income of an employee and it is 100% taxable. I dont know that where from you have quote the definition of basic salary.

Dear Zaib,
i read it in income tax rule 2008, page # 5, downloaded from FBR site. It's Rule 4(a)... please check and guide...

This is "<u>exhaustive as well inclusive definition</u>"

ab mai apko tax ki apni language mai samjhata hun..


basic salary....means...any pay and allownaces.


<b>which allowances??</b>

allowances which are payable monthly...


yahan tk ok na...


main agay jin ka batana lga hun unko basic salary mai shamil na kar lene..


magar basic salary mai woh allowance shamil nahi hon gy..


<b>konsy?? </b>


dearness allowance or dearness...

agar ap in allowance ko computation of superannuation fund ya retirement fund mai add karain gy to ye allowance basic salary mai add nahi hon gy..