Decision on difference between basic pay and special pay by supreme court
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Basic pay is the lowest amount that constitutes a package or a salary. It is usually a tax free amount so that all calculations are based on it. Depending on the basic pay, all other components are made according to it.
Special pay is taxable and it includes basic pay, allowances and benefits that a person may accrue on account of a basic pay. It can include many components in it and can be a huge sum compared to the basic pay.
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