Deductions from salaries
Deductions from salaries.
16. The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely:—
52[(i) 53[a deduction of] 54[ 55[a sum equal to thirty-three and one-third per cent of the salary or twelve thousand rupees, whichever is less]]:
Provided that—
(i) 56-57[***]
(ii) where any motor car, motor cycle, scooter or other moped is provided to the assessee by his employer for use by the assessee, otherwise than wholly and exclusively in the performance of his duties; or
(iii) where one or more motor cars are owned or hired by the employer of the assessee and the assessee is allowed the use of such motor car or all or any of such motor cars, otherwise than wholly and exclusively in the performance of his duties,
the deduction under this clause shall not exceed one thousand rupees.]
58[Explanation 1: 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;]
59[Explanation 2: For the purposes of the proviso to this clause, the use of any vehicle referred to therein for journey by the assessee from his residence to his office or other place of work, or from such office or place to his residence, shall not be regarded as the use of such vehicle otherwise than wholly and exclusively in the performance of his duties;]
(ii) 60[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 lst day of April, 1955, or a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisites) or seven thousand five hundred rupees, whichever is the least.
(iii) 61[***]
(iv) 62[***]
(v) 62a[***]
52. Substituted by the Finance Act, 1974, w.e.f. 1-4-1975.
53. Substituted for "in respect of expenditure incidental to the employment of the assessee," by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.
54. Substituted for the following [as it stood after amendment made by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981] by the Finance Act, 1981, w.e.f. 1-4-1982:
"a sum calculated on the basis provided hereunder, namely:—
| (a) where the salary does not exceed Rs. 10,000 | 20 per cent of such salary; |
| (b) where the salary exceeds Rs. 10,000 | Rs. 2,000 plus 10 per cent of the amount by which such salary exceeds Rs. 10,000 or Rs. 3,500, whichever is less:" |
55. Substituted for "a sum equal to *thirty per cent of the salary or †ten thousand rupees, whichever is less" by the Finance Act, 1988, w.e.f. 1-4-1989. *"thirty" was substituted for "twenty-five" by the Finance Act, 1986, w.e.f. 1-4-1987 and "twenty-five" was substituted for "twenty" by the Finance Act, 1982, w.e.f. 1-4-1983. †"ten" was substituted for "six" by the Finance Act, 1986, w.e.f. 1-4-1987 and "six" was substituted for "five" by the Finance Act, 1983, w.e.f. 1-4-1984.
56-57. "where the assessee is in receipt of a conveyance allowance from his employer; or" omitted by the Finance Act, 1981, w.e.f. 1-4-1982.
58. Inserted by the Taxation Laws (Amendment) Act, 1984, with retrospective effect from 1-4-1975 and numbered as Explanation 1 by the Finance Act, 1985, w.e.f. 1-4-1986.
59. Inserted by the Finance Act, 1985, w.e.f. 1-4-1986.
60. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.
61. Omitted by the Finance Act, 1974, w.e.f. 1-4-1975.
62. Omitted by the Finance Act, 1974, w.e.f. 1-4-1975. Earlier, clause (iv) was substituted/amended by the Finance Act, 1968, w.e.f. 1-4-1968, the Finance Act, 1969, w.e.f. 1-4-1970, the Finance Act, 1970, w.e.f. 1-4-1971 and the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972.
62a. Omitted by the Finance Act, 1974, w.e.f. 1-4-1975.
[AS AMENDED BY THE FINANCE ACT, 1988]