Salary for the purpose of provident fund
umesh gupta
valuation of basic wages for calculation of p.f.
Clarification on Provident Fund Calculation: 'Salary' Includes Dearness Allowance per Income Tax Act, Excludes Other Allowances. A query was raised regarding the valuation of basic wages for the calculation of provident fund, specifically concerning what constitutes 'salary' under Indian laws. The reply referenced the fourth schedule of the Income Tax Act, 1961, clarifying that 'salary' includes dearness allowance if specified in the terms of employment but excludes other allowances and perquisites. (AI Summary)