धारा 16

Deductions from salaries.

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

(i) [***]

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

Following proviso shall be inserted in clause (ia) of section 16 by the Finance (No. 2) Act, 2024, w.e.f. 1-4-2025:

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) [***]