Wednesday, January 7, 2009

DEDUCTION FROM SALARY- SEC.16

1. Entertainment allowance – Sec 16(ii)

Entertainment allowance received by an employee is first included in the salary and a deduction is allowed under this section

I. Govt employees, exemption to the least of the following

· Rs 5000/- per annum
· 20% of basic salarys
· Actual amount received

II. Non Govt employees no deduction is allowable

· No deduction is allowable

2. Deduction for professional or employment tax – Sec.16 (iii)

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