Entertainment allowance is deductible under which provision?
ASection 16(ia)
BSection 16(iii)
CSection 17(ii)
DSection 16(ii)
Answer & Solution
Correct answer: D. Section 16(ii)
1. Section 16 lists three deductions from salary in a fixed order.
2. Standard deduction comes first, under section 16(ia).
3. Entertainment allowance is the second, under section 16(ii).
4. Professional tax is the third, under section 16(iii).
_Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.4_
Related questions
Provident fund is discussed in the salaries chapter because it isLeave encashment received by an employee is charged underGratuity received by an employee is dealt with under which head of income?In the salary computation, transport allowance appears asThe leave travel concession exemption is available toDeduction for entertainment allowance and professional tax is allowableUnder the default tax regime, house rent allowance isFor a payment to be taxed under the head Salaries, there must be