Our Recommendations :-
Follow CA Final FB Page

THE DEDUCTIONS FROM SALARY INCOME UNDER SECTION 16?

Open uri20170510 32134 ughyv5?1494421703 gunesh asked over 2 years ago

Hi I am planning to write CA exam. May I know THE DEDUCTIONS FROM SALARY INCOME UNDER SECTION 16?

    0       0 Answer Now Comment Report
Dipti commented 20 days ago

Dear, Ganesh... Section 16 is the Income Tax Act For Salary Deduction ... Income Tax Act (section 16) provides allowable deductions from All Salary income. In section 16 (Income Tax Act) there are all 3 deductions (two now) Under Section 16, provided in three different clauses. all these three clauses are given below. * Clause A of Section 16 Allows a Standard Deduction, * Clause B of section 16 Allows Deduction For Entertainment Allowance. * Clause A Of Section 16 Allows Deduction For Professional Tax .

5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Entertainment Allowance [Section 16(ii)]: A deduction is also allowed under section 16(ii) 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. No deduction on account of entertainment allowance is available to non-government employees.

    2       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

Dear friend, Section 16 - deduction from salary income The income chargeable under the head "salaries" is computed after making the following deductions: **1) Entertainment allowance:-** For govt employees- the deduction is least of the following:- a) actual amount received during the year b) 20% of salary c) 5,000 **2) Professional tax**:-Any amount paid by the employee shall be allowed as deduction in the year of payment . If professional tax of employee is paid by the employer then first it shall be included in the gross salary of all employee and then deduction shall be allowed u/s

    0       0 Comment Report
Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Gunesh, Section 16 - deduction from salary income ----------------------------------------- The income chargeable under the head "salaries" is computed after making the following deductions: 1) Standard deduction 2) Entertainment allowance 3) Professional tax 1) **Standard deduction** - Deleted by Finance Act 2005 2) **Entertainment allowance -** For govt employees- the deduction is least of the following:- a) actual amount received during the year b) 20% of salary c) 5,000 3) **Professional tax** - Any amount paid by the employee shall be allowed as deduction in the year of payment . If professional tax of employee is paid by the employer then first it shall be included in the gross salary of all employee and then deduction shall be allowed u/s

    1       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Suhag answered over 2 years ago

**Salary is taxed after allowing the following deductions under section 16 (ii) and (iii); viz.** **1) Entertainment Allowance – Section 16 (ii)** -: a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee 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. **2) Professional Tax – Section 16 (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. THANKS....

    0       0 Comment Report
Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered over 2 years ago

Deductions u/s 16 of the Act from the Income from Salaries ---------------------------------------------------------- **1- Entertainment Allowance [Section 16(ii)]:** A deduction is also allowed under section 16(ii) 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. No deduction on account of entertainment allowance is available to non-government employees. **2 Tax on Employment [Section 16(iii)]:** The tax on employment (Professional Tax) within the meaning of Article 276(2) of the Constitution of India, leviable by or under any law, shall also be allowed as a deduction in computing the income under the head "Salaries". It may be clarified that "Standard Deduction" from gross salary income, which was being allowed up to financial year 2004-05 is not allowable from financial year 2005-06 onwards. Tags-section 16 income tax,income tax section 16,section 16 income tax act,section 16 of income tax,section 16 of income tax act,section 16 deduction,salary deduction u/s 16

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.