Deduction Out Of Gross Salary [ Sec. 16]
1. Entertainment Allowance [ U/s 16(ii)]
Deduction u/s 16(ii) admission to govt. employee shall be an amount equal to least of following :
- Statutory Limit of Rs.5,000 p.a.
- 1/5 th of Basic Salary
- Actual amount of entertainment allowance received during the previous year.
2. Tax on Employment u/s 16(iii
In case any amount of professional tax is paid by the employee or by his employer on his behalf it is fully allowed as deduction.