Kindly guide me on the following issue-
We are paying Gross Salary, divided into following components 50% basic + 50% flexi plan. Under Flexi plan we offer the employee to opt best suited options for him. Hence the components came as HRA, Food Coupons, Medical reimbursement and Sp. Pay.
Sp. pay is the balance amt. left after all other components in the Flexi plan, and is taxable.
e.g. Gross Salary 4lac, Basic 2lac and 2lac p.a. is Flexi plan (1lac HRA, 13k Food Coupons, 15k Medical and rest 72k will be Sp. Pay). Hence we may say that this is fixed amt. based on choice of employee, for the Financial Yr.
My query is for calculating salary (eligibility criteria of 10k) this Sp. pay will be considered as part of Salary or not.
Thanks in advance.
12th November 2009 From India, New Delhi
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