The following elements are important for salary computation and its payment:

(A) Grade Pay (GP)

(B) Dearness Allowance (DA)

(C) Transport Allowance (TRA)

(D) Goods and Service Tax (GST)

Choose the correct answer from the options given below:

(A), (B) and (C) only

The correct answer is option 2- (A), (B) and (C) only.

Besides Goods and Service Tax (GST), all others are important elements for salary computation and its payment.
GST is a tax on goods and services, not on salaries. It is not part of payroll, it applies to business transactions, not employee compensation.

Every employee is under contractual relationship of service with an organisation, and is paid salary accordingly. The following elements are important for salary computation and its payment:

Basic Pay (BP): It is the pay in the pay scale plus Grade Pay, but does not include Special Pay.

Grade Pay (GP): It is the pay to be added to the Basic Pay according to the Designation of the employee and applicable pay band or scale of pay.

Dearness Pay (DP): It is that portion of Dearness Allowance, which has been declared and deemed to have been merged with the Basic Pay.

Dearness Allowance (DA): It is a compensation for erosion in the purchasing power of wage earner due to price rise. It is granted by the Government periodically as a percentage of (Basic Pay + Dearness Pay, if applicable).

House Rent Allowance (HRA): It is an amount paid to facilitate employee in acquiring on lease of residential accommodation.

Transport Allowance (TRA): It is an amount to facilitate commuting to the the place of work, i.e. Delhi, Bhopal, Haridwar, etc.

Any Other Earning: It may include any other allowance not included above but declared from time to time, such as Education Allowance, Medical Allowance, Washing Allowance, etc.