Deductions from salaries
Deductions from salaries.
63 16. The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :—
64 [(i) in the case of an assessee whose income from salary, before allowing a deduction under this clause, does not exceed sixty thousand rupees, a deduction of a sum equal to thirty-three and one-third per cent of the salary or eighteen thousand rupees, whichever is less;
(ia) in any other case, a deduction of a sum equal to thirty-three and one-third per cent of the salary or fifteen thousand rupees, whichever is less :
Provided that in the case of an assessee, being a woman, whose total income before making any deduction under this clause, does not exceed seventy-five thousand rupees, the provisions of this clause shall have effect as if for the words "fifteen thousand rupees", the words "eighteen thousand rupees" had been substituted.
Explanation.— For the removal of doubts, it is hereby declared that where, in the case of an assessee, salary is due from, or paid or allowed by, more than one employer, the deduction under this clause shall be computed with reference to the aggregate salary due, paid or allowed to the assessee and shall in no case exceed the amount specified under clause (i ) or clause (ia), as the case may be;]
The following clause (i ) shall be substituted for the existing clauses (i ) and (ia) of section 16 by the Finance Act, 1997, w.e.f. 1-4-1998 :
(i) a deduction of a sum equal to thirty-three and one-third per cent of the salary or twenty thousand rupees, whichever is less.
Explanation.— For the removal of doubts, it is hereby declared that where, in the case of an assessee, salary is due from, or paid or allowed by, more than one employer, the deduction under this clause shall be computed with reference to the aggregate salary due, paid or allowed to the assessee and shall in no case exceed the amount specified under this clause;
( ii) 65 [a deduction] in respect of any allowance in the nature of an entertainment allowance specifically granted to the assessee by his employer—
( a) in the case of an 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; and
( b) in the case of any other assessee who is in receipt of such entertainment allowance and has been continuously in receipt of such entertainment allowance regularly from his present employer from a date before the 1st day of April, 1955, the amount of such entertainment allowance regularly received by the assessee from his present employer in any previous year ending before the 1st day of April, 1955, or a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or seven thousand five hundred rupees, whichever is the least;