:HILLS COMPULSORY ALLOWANS ITS COME TO STANDARED DEDUTION

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) ....