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Section 16Central Act

Section 16: Deductions from salaries

Deductions from salaries.

- The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely:-[* * *] [ Clause (i) omitted by Act 18 of 2005, Section 6 (w.e.f. 1.4.2006).][(i-a) a deduction of forty thousand rupees or the amount of the salary, whichever is less;] [Inserted by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]

(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;] [ Substituted by Act 14 of 2001, Section 12, for Clause (ii) (w.e.f. 1.4.2002).]

(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.] [ Inserted by Act 13 of 1989, Section 5 (w.e.f. 1.4.1990).]

(iv)

[* * *] [ Clauses (iv) and (v) omitted by Act 20 of 1974).]

(v)

[* * *] [ Clauses (iv) and (v) omitted by Act 20 of 1974).]

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