Can Employers Offer a Monthly Project Allowance Separate from Regular Salary?

Kenneth Dias
Can an employee be paid a separate allowance, e.g., "project-related special allowance," over and above his normal monthly salary? This allowance will not be part of his salary components but paid separately each month.
fc.vadodara@nidrahotels.com
All allowances are part of the salary, even though they are paid separately. They will be considered as taxable salary.

Thank you.
Bharat Gera
If you pay as reimbursement against bills to the tune you wish to pay as a project allowance, it will be non-taxable.
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