S. 10(13A) ‘Salary’ does not include bonus for Calculation of HRA

The question whether a particular payment made to an employee constitutes “salary” for the purposes of Rule 2A will have to be determined only by reference to the definition of that expression as contained in Rule 2(h) of Pt. A of the Fourth Schedule to the Act. On a close study of the said rule in conjunction with Rules 4 and 5 of the same Part in the same Schedule, it appears to us to be perfectly clear that bonus cannot be regarded as falling within the scope of the expression “salary” as defined in Clause (h) of Rule 2. Clauses (b) and (c) of Rule 4 contain a clear ...