Section 16:
Deductions from salaries.
The income chargeable under the head “Salaries” shall be computed
after making the following deductions, namely:—
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(ia) a deduction of 4
fifty thousand rupees or the amount of the salary, whichever is less;
(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;
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(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.
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Notes:
1. Subs. by Act 14 of 2001, s. 12, for clause (i) and (ii) (w.e.f. 1-4-2002).
2. Clause (i) omitted by Act 18 of 2005, s. 6 (w.e.f. 1-4-2006).
3. Ins. by Act 13 of 2018, s. 7 (w.e.f. 1-4-2019).
4. Subs. by Act 7 of 2019, s. 3, for “forty thousand” (w.e.f. 1-4-2020).
5. Ins. by Act 13 of 1989, s. 5 (w.e.f. 1-4-1990). Earlier clause (iii) omitted by Act 20 of 1974, s. 4 (w.e.f. 1-4-1975).
6. Clause (iv) and (v) omitted by Act 20 of 1974, s. 4 (w.e.f. 1-4-1975).