Normally,Flat salary is not given.

It is broken into different heads like Basic,DA,HRA, Medical Reimbursement etc,

Some of these are called Allowances while others are called perquisites as explained below


Normally Salary given by employer to employee is of 2 types

1. Allowance It is a fixed or flat amount given to employees


2. Perquisites   It is a  facility or benefit given to employees. They can be further classified into

     a. Monetary Perquisites. -They are in nature of reimbursement or Employee first incurs an expense and then claim it from the company

     b. Non Monetary Perquisites- They are in nature of free facility given by the employer


What are Allowances and Perquisites - Basic Concepts

  1. Income Tax
  2. Income from Salaries
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.