Entertainment Allowance


25 April 2011 As per sec 16 (ii), the Entertainment Allowance is specifically taxable or exempt upto certain limits in case of Govt employees.
Can the Entertainment Allowance be considered for exemption under section 10(14)also?
What made me to ask this qn is that such exemption of a hefty sum is allowed in a Form No 16 issued by a well managed company

25 April 2011 Section 16(ii) is a specific section and grants exemption in respect of entertainment allowance to govt. employees only. So when is there is a specific provision in the law itself, it overrides the general provisions. so compnay cant take benefit of section 10(14) to exempt entertainment allowance given to employees.

it is my personal view only

25 April 2011 Thanks CA Deepak K Narula. Your views are convincing thats why my quenstion cropped.
However since the views of Ld CA are "Personal" only, i would like to welcome any more expert who can provide professional opinion with any circular/case law/otherwise practicle instances, to rule out any doubt.


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