1) What Is Personal Pay?(2)What Is Arear?

Dear Sir,
I am working as Officer-Personnel & HR. I also make payments for our marketing Branches in india and for them, we have separate salary structure where Personal Pay is being Paid,
so what is Personal Pay? And What Arear is?
Kindly explain in detail and Also
from 1st April Gujarat Govt. is putting more charge that is under Professional Tax so how to calucate for increament of Prof.Tax?
Thank you
Bhardwaj.

Personal Pay is a component of total salary payable. Different companies have different approaches to salary structure. Personal pay is like dearness allowance which is always paid as a percentage of basic salary. Some companies restrict personal pay to those who are working in the office and may also be called ' special pay'.

Arrear accrues when salary is not paid during a month due to any reason. It also accures when pay is revised with retrospective effect from a previous period. Say, the DA is revised with effect from 1st Jan 2008. Then the DA difference due for Jan, Feb and Mar will be in arrear which has to be paid on a date fixed.

Profession tax structure applicable to your state has to be referred to. There may be a slab and incomes/ salary coming under each slab will attract profession tax as shown against each slab. Normally, it is deducted from the salary half yearly. It can also be deducted monthly if the total amount to be deducted half yearly is known but the payment will be made half yearly only.

Regards,

Madhu.T.K

I want to know whether this Personal Pay will be considered as salary for calculating deduction for HRA u/s 10(13A) or not?