Standard deduction from salary is allowed under which provision?
ASection 16(ii)
BSection 16(iii)
CSection 16(ia)
DSection 15(ia)
Answer & Solution
Correct answer: C. Section 16(ia)
1. Income under the head Salaries is computed after the deductions allowed by section 16.
2. The first of those is the standard deduction, under section 16(ia).
3. Section 16(ii) allows entertainment allowance and section 16(iii) allows professional tax.
4. Section 15 is the charging provision, not a deduction provision.
_Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.4_
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