Are Outstation Allowances Part of the Annual CTC? Seeking Clarity on Salary Structure - CiteHR

Hello Friends, One of my friends works in an International BPO in Ahmedabad. He's basically from Vadodara. Now his company is providing him Rs. 4,000/- as 'OUTSTATION Allowances'. So he wants to know whether these allowances will be included as part of his Annual CTC package? In other words, will these allowances be a part of the Gross salary structure? Please give me feedback on this query.

Regards, Harshavardhan

From India, Ahmadabad
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Yes, it will be a part of the Annual CTC. Please check the salary slip or the Salary Annexure of your Appointment Letter to see if it is included in the Gross Salary as well. To the best of my knowledge, it will be included in the Gross Salary.
From India, Ahmadabad
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Outstation Allowances and Income Tax

Outstation allowances or site allowances are considered income and are subject to income tax. They may be treated as part of the Cost to Company (CTC); however, this allowance will be discontinued once the employee returns to the base. Hence, it is not fixed. In some organizations, these allowances are not included in the CTC.

Thanks!

From India, Lucknow
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