Tax Management India. Com
                        Law and Practice: A Digital eBook ...

☞ Data-bank

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News D. Forum
Highlights
What's New  Latest Cases 

Share:      

        Home        
 
Law and Procedure an e-book
Home List Manuals Income Tax Salary Income This

Entertainment Allowance - Professional Tax - Section 16(ii) and 16(iii) - Salary Income - Income Tax

Entertainment Allowance - Professional Tax - Section 16(ii) and 16(iii)
  • Contents
  • Plus+

 Sec. 16(ii): ENTERTAINMENT ALLOWANCE

Deduction allowable to Govt. employees only to the extent of the least of the following:

  • 5,000
  • 20% of Salary exclusive of any allowance, benefit or other perqisite
  • Actual entertainment allowance received for the previous year

Note:

  • In case of entertainment allowance the assessee is not entitled to any exemption but he is entitled to a deduction u/s 16(ii). Therefore the entire entertainment allowance is added in the computation of gross salary and then the Government employee is entitled to deduction from gross salary.
  • Entertainment allowance is also called sumptuary allowance.

 

Sec. 16(iii): PROFESSIONAL TAX

  • If paid by Employee – Deduction is allowed from Gross Salary
  • If paid by Employer – Tax so paid should be included in gross salary as perquisite & then deduction can be claimed from Gross Salary.

Note: If professional tax is due but not paid, then not allowed as deduction.

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||