Menu
Entertainment Allowance
He draws Entertainment Allowance of Rs2000 per month, out of which he spends Rs1500 per month on the entertainment of company's customers. Which one of the amount is taxable or non taxable
Replies (1)
ENTERTAINMENT ALLOWANCE IS FULLY TAXABLE.
HOWEVER, DEDUCTION IS AVAILABLE IN CASE OF GOVT. EMPLOYEE. THE AMOUNT DEDUCTION WILL BE LOWER OF:
1. 1/5 OF BASIC SALARY 2. 5000 OR 3. ENTERTAINMENT ALLOWANCE RECEIVED
ACTUAL AMOUNT SPENT OUT OF EA RECEIVED IS NOT A RELEVANT CONSIDERATION AT ALL.
Related Topics
CAclubindia
