Component	Treatment	Control note
Basic pay	Included	Core wage component
Dearness allowance	Included	Core wage component
Retaining allowance	Included	Core wage component
Statutory bonus	Excluded subject to 50% add-back	Test aggregate exclusions
House rent allowance	Excluded subject to 50% add-back	Test aggregate exclusions
Overtime allowance	Excluded subject to 50% add-back	Separately test overtime compliance
Commission	Excluded subject to 50% add-back	Test nature and payroll coding
Employer PF contribution	Excluded subject to statutory wording	Do not net against employee wages
Conveyance allowance	Excluded subject to 50% add-back	Evidence business purpose where relevant
Special allowance	Classification depends on substance; 50% rule relevant	Avoid label-only structuring
Leave encashment	Not treated as an allowance in official FAQ	Test event and instrument
Gratuity	Excluded from wages definition	Separate statutory benefit
Retrenchment compensation	Excluded	Separate IR entitlement
Value of house accommodation/light/water/medical amenity	Excluded subject to wording	Check authorised exclusion
Remuneration in kind	May be included up to prescribed limit	Document valuation method