Entertainment Allowance

It is an Allowance given by an employer to an employee. It is included under the head income from salary

A government employee receiving Entertainment Allowance is entitled to deduction under section 16(ii) from gross salary.

Sec. 16(ii) prescribes that a government employee can deduct

  • 1/5th of salary, or
  • Rs 5,000.

              Whichever is less


Here salary includes excludes any Allowance, Benefit or other Perquisites.


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