of ‘any other allowance’ by limiting components in the nature of ‘commission’ only to fall under it.
The Delhi High Court held that the terms ‘commission’ and ‘any other similar allowance’ have been written in the law without any break or ‘comma’. Accordingly, both the terms should be read together and ‘any other similar allowance’ would, therefore, mean an allowance which is similar to commission.
There may be further deliberations and clarifications on this specific point in future rulings. A similar issue relating to the definition of basic wages is pending before the Supreme Court. It is likely that more certainty on the matter may come after the Supreme Court passes its judgment.
* The writer is manager, Tax & Regulatory Services, EY. Views expressed are personal