DEDUCTIONS U/S 16 OF THE ACT

DEDUCTIONS U/S 16 OF THE ACT

 

 

DEDUCTIONS U/S 16 OF THE ACT

 Standard deduction under section 16 (ia):

From financial year 2019-20, a deduction of fifty thousand rupees or the amount of salary From financial year 2019-20, a deduction of fifty thousand rupees or the amount of salary.

 Entertainment Allowance [Section 16(ii)]:

A deduction is also allowed under  section  16(ii)  in respect of any allowance in the nature of an entertainment allowance specifically  granted by an employer to the assessee, who is  in receipt of a salary from the Government, a sum equal to  one-fifth  of  his  salary(exclusive of any allowance, benefit or other perquisite) or five thousand rupees whichever is less. No deduction on account of entertainment allowance is available to non- government employees.

Tax on Employment [Section 16(iii)]:

The tax on employment (Professional Tax) within the meaning of article 276(2) of the Constitution of India, leviable by or under any law, shall also be allowed as a deduction in computing the income under the head “Salaries”.

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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