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.
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.
