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Others 332 views 8 replies

section 16 covers which allowances?

Replies (8)
entertainment allowancr and professional tax is covered

Sec. 16 IT act:

(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;

 (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;

(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.

section 16 covers
1. standard deduction of rs. 40000
2. entertainment allowance of 1/5 th of salary or 5000 whichever is lower
3. professional tax
LEAVE TRAVEL CONCESSION IS APART FROM THE SECTION 16 ??
Ltc is not covered under section 16
okay thank you so much
you are welcome
Agree with Mr. Rama Krishnan.


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