Deductions from salaries.

16. The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :-

(i) [***]

¹(ia) a deduction of ²fifty thousand rupees or the amount of the salary, whichever is less;

^3. [‘Provided that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC, the provisions of this clause shall have effect as if for the words “fifty thousand rupees”, the words “seventy-five thousand rupees” had been substituted;’.]

(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.

(iv) [***]

(v) [***]

Notes- 

1. Inserted by the Finance Act, 2018, (w.e.f. 1-4-2019)

2. Subsitituted by Notification the Finance Act, 2019. 

In clause (ia),

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

the following word shall be subsitituted namely;

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

3. Inserted by the Finance Bill 2024 dated  07.08.2024 w.e.f 01.04.2025