Salary-allowance for performing official duties Section 12c
Salary-allowance for performing official duties Section 12c: Clause C of sub-section 2 of section 12, while adding different kind of allowances in definition of salary, clarifies that the allowances solely expended by employees in performance of official duties shall not be treated as salary.
However, no further clarification was available in law about allowances for performing official duties.
Now the bill seeks to propose further clarification about allowance for performing official duties which is as under:
Explanation. – For removal of doubt, it is clarified that the allowance solely expended in the performance of employee’s duty does not include:
(i) allowance which is paid in monthly salary on fixed basis or percentage of salary; or
(ii) allowance which is not wholly, exclusively, necessarily or actually spent on behalf of the employer.
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