:HILLS COMPULSORY ALLOWANS ITS COME TO STANDARED DEDUTION

Employment Tax/Professional Tax AND Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations) ITS COME TO STANDARD DEDUCTION OR NOT
Professional Tax IS COME UNDER SECTION 16 AND STANDARD DEDUCTION ALSO WE CAN CLAIM RS 40000 PLUS PROFESSIONAL TAX ALSO CLAIM RS 2500
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Deductions from salaries.

16. The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :—

  (i) [***]

Following clause (ia) shall be inserted after clause (i) of section 16 by the Finance Act, 2018, w.e.f. 1-4-2019 :

(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less; (i.e STANDARD DEDUCTION)

 (ii) a deduction 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; (i.e entertainment allowance)

(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. (i.e Professional tax)

 

All three are distinct; and hill area allowance is exempt u/s. 10(14) ....

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