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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

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