Section | Nature of deduction | Who can claim |
---|---|---|
-1 | -2 | -3 |
Against ‘salaries’ | ||
16(ia) | Standard Deduction [Rs. 40,000 or the amount of salary, whichever is lower] | Individual – Salaried Employee |
16(ii) | Entertainment allowance [actual or at the rate of 1/5th of salary, whichever is less] [limited to Rs. 5,000] | Government employees |
16(iii) | Employment tax | Salaried assessees |
16(ia) Standard Deduction [Rs. 40,000 or the amount of salary, whichever is lower]
Deductions from salaries.
16. The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—
(i) [***]
Following clause (ia) shall be inserted after clause (i) of section 16 by the Finance Act, 2018, w.e.f. 1-4-2019 :
(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;
(ii) a deduction 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;
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.
(iv) [***]
(v) [***]
16(ii) Entertainment allowance [actual or at the rate of 1/5th of salary, whichever is less] [limited to Rs. 5,000]
16. The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—
(i) [***]
Following clause (ia) shall be inserted after clause (i) of section 16 by the Finance Act, 2018, w.e.f. 1-4-2019 :
(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;
(ii) a deduction 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;
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.
(iv) [***]
(v) [***]
Also Read – Deductions U/S 16 Of The Act From The Income From Salaries F.Y 2017-18
16(iii) Employment tax
Deductions from salaries.
16. The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—
(i) [***]
Following clause (ia) shall be inserted after clause (i) of section 16 by the Finance Act, 2018, w.e.f. 1-4-2019 :
(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;
(ii) a deduction 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;
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.
(iv) [***]
(v) [***]