on Meaning of specified employee (Section 17(23mm). An employee is said to be specified employee in any of the following cases (a) Ir be is director of the company, or (b) he has substantial interest in the affairs of the company ie, he bolds at least 20% of the voting power (equity shares) in the company, or (c) his monetary annual salary income is more than 50,000 pa Salary for this purpose means all what he gets in cash from one employer or more than one employer if he works for more than one employer simultaneously whether full time or part time, and is taxable under the head Salary The total of these items is to be treated us gross salary out of which deductions ws 16(m) and (10) are to be allowed. Monetary Salary includes: 1 Basic Salary 2 DA/D.P/A.D.A. 1. Bomus, Commission, Fees and all taxable allowances or taxable portion of an allowance 4. Any percuisites received in cash or in monetary form. 5. Gratuity, Pension, Leave Salary but arrears of salary and salary received in advance is to be excluded. 6. In case employee is working simultaneously with more than one employer. salary from all the employers is to be included 7. Monetary annual salary incomo 350,000 shall be calculated after allowing deductions / 16(ii) and 16() ILLUSTRATION 27 From the particulars given below. Find out whether the employee who is nether a director nor a shareholder, is specified cmployee or not ir (a) He is Haryana Govt. Employee; or (b) He is private sector employee 24.000 Salary 3.000 DA HRA 24,000 18.000 Rent Paid at Chandigarh 11.000 Entertainment Allowance