What Is Entertainment Allowance U/s 16 Ii?

Non-deductibility of the entertainment allowance

The entertainment allowance is included in the salary income and then a deduction is provided based on a few criteria. The allowance must be granted by the employer to the taxpayer. Non government employees can't deduct the entertainment allowance.

The Income Tax is not a Ceiling

There is no ceiling on the income tax. State governments cannot impose more than Rs. 2,500 per annum is professional tax. Professional tax paid during the previous year is deductible under the Income-tax Act.

On the symmetries of two different versions

The same is available in a different form. The form contains the evidence of the tax deducted from your salary. The Form issued every year on or before June 15.

An agreement between the employer and professional tax on travel expenses

If professional tax is paid directly by the employer, the amount paid is included in the employee's salary income and allowed as a deduction. The exemption is only available on the actual travel costs. Local conveyance, sightseeing, hotel accommodation, food, and other expenses are not eligible for exemption.

The employer provides long term care. An agreement was entered on the 4th of 2004. The tax that the Indian company pays to the foreign enterprise is Rs.40, 000.

On the salary of a person

A person talks about salary and it is called a "CTC". The company is referred to as the CTC. The amount of money the company spends on hiring and sustaining employees. It is possible that the actual salary that a person is receiving is different from the actual income that they receive.

On the Regular Sums of Time Off Payable Services Provided by Employee

Fixed quantity amount given regularly in addition to salary for the purpose of meeting some particular requirement connected with the services rendered by the employee or as compensation for unusual conditions of that service is known as allowance.