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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.

Dear friend, Section 16 - deduction from salary income The income chargeable under the head "salaries" is computed after making the following deductions: **1) Entertainment allowance:-** For govt employees- the deduction is least of the following:- a) actual amount received during the year b) 20% of salary c) 5,000 **2) Professional tax**:-Any amount paid by the employee shall be allowed as deduction in the year of payment . If professional tax of employee is paid by the employer then first it shall be included in the gross salary of all employee and then deduction shall be allowed u/s

Hie Gunesh, Section 16 - deduction from salary income ----------------------------------------- The income chargeable under the head "salaries" is computed after making the following deductions: 1) Standard deduction 2) Entertainment allowance 3) Professional tax 1) **Standard deduction** - Deleted by Finance Act 2005 2) **Entertainment allowance -** For govt employees- the deduction is least of the following:- a) actual amount received during the year b) 20% of salary c) 5,000 3) **Professional tax** - Any amount paid by the employee shall be allowed as deduction in the year of payment . If professional tax of employee is paid by the employer then first it shall be included in the gross salary of all employee and then deduction shall be allowed u/s

**Salary is taxed after allowing the following deductions under section 16 (ii) and (iii); viz.** **1) Entertainment Allowance – Section 16 (ii)** -: a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee 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. **2) Professional Tax – Section 16 (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. THANKS....

Deductions u/s 16 of the Act from the Income from Salaries ---------------------------------------------------------- **1- 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. **2 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". It may be clarified that "Standard Deduction" from gross salary income, which was being allowed up to financial year 2004-05 is not allowable from financial year 2005-06 onwards. Tags-section 16 income tax,income tax section 16,section 16 income tax act,section 16 of income tax,section 16 of income tax act,section 16 deduction,salary deduction u/s 16