Deductions from salaries The income chargeable under the head Salaries shall be computed after making the following deductions, namely-
a deduction of a sum equal to thirty- three and one- third per cent of the salary or fifteen thousand rupees, whichever is less Provided that in the case of an assessee, being a woman, 1. Substituted by the Finance Act, 1974, w. e. f. 1- 4- 1975. 2. Substituted for in respect of expenditure incidental to the employment of the assessee by the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1981 3. Substituted by the Finance Act, 1981, w. e. f. 1- 4- 1982. It was earlier amended by the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1981 4. Substituted for a sum equal to thirty per cent of the salary or ten thousand rupees, whichever is less by the Finance Act, 1988, w. e. f. 1- 4- 1989. Earlier, thirty was substituted for twenty- five by the Finance Act, 1986, w. e. f. 1- 4- 1987 and for twenty by the Finance Act, 1982, w. e. f. 1- 4- 1983. Earlier, ten was substituted for six by the Finance Act, 1986, w. e. f. 1- 4- 1987 and for five by the Finance Act, 1983, w. e. f. 1- 4- 1984. 5. Substituted for twelve by the Finance Act, 1993, w. e. f. 1- 4- 1994. 6. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. Earlier, the proviso was omitted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Prior to the omission, it read as under Provided that- i ii Where any motor car, motor cycle, scooter or other moped is provided to the assessee by his employer for use by the assessee, otherwise than wholly and exclusively in the performance of his duties or iii where one or more motor cars are owned or hired by the employer of the assessee and the assessee is allowed the use of such motor car or all or any of such motor cars, otherwise than wholly and exclusively in the performance of his duties, whose total income before making any deduction under this clause does not exceed seventy- five thousand rupees, the provisions of this clause shall have effect as if for the words fifteen thousand rupees, the words eighteen thousand rupees had been substituted. Explanation .- For the removal of doubts, it is hereby declared that where, in the case of an assessee, salary is due from, or paid or allowed by, more than one employer, the deduction under this clause shall be computed with reference to the aggregate salary due, paid or allowed to the assessee and shall in no case exceed the amount specified under this clause
Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Earlier, it was omitted by the Finance Act, 1974, w. e. f. 1- 4- 1975.
a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted to the assessee by his employer- a in the case of an 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 and b in the case of any other assessee who is in receipt of such entertainment allowance and has been continuously in receipt of such entertainment allowance regularly from his present employer from a date before the 1st day of April, 1955 , the amount of such entertainment allowance regularly received by the assessee from his present employer in any previous year ending before the 1st day of April, 1955 , or a sum equal to one fifth of his salary exclusive of any allowance, benefit or other perquisite or seven thousand five hundred rupees, whichever is the least
a in the case of an 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 and
b in the case of any other assessee who is in receipt of such entertainment allowance and has been continuously in receipt of such entertainment allowance regularly from his present employer from a date before the 1st day of April, 1955 , the amount of such entertainment allowance regularly received by the assessee from his present employer in any previous year ending before the 1st day of April, 1955 , or a sum equal to one fifth of his salary exclusive of any allowance, benefit or other perquisite or seven thousand five hundred rupees, whichever is the least
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. 999999. - the deduction under this clause shall not exceed one thousand rupees. Clause i was omitted by the Finance Act, 1981, w. e. f. 1- 4- 1982. 1. Substituted for twelve by the Finance Act, 1993, w. e. f. 1- 4- 1994. 2. Substituted for fifteen by the Finance Act, 1993, w. e. f. 1- 4- 1994. 3. Inserted by the Taxation Laws Amendment Act, 1984, w. r. e. f. 1- 4- 1975. 4. The figure 1 omitted by the Finance Act, 1989, w. e. f. 1- 4- 1990. it was inserted by the Finance Act, 1985, w. e. f. 1- 4- 1986. 5. Omitted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Prior to the omission, Explanation 2, as inserted by the Finance Act, 1985, w. e. f. 1- 4- 1986, read as under Explanation 2.- For the purposes of the proviso to this clause, the use of any vehicle referred to therein for journey by the assessee from his residence to his office or other place of work, or from such office or place to his residence, shall not be regarded as the use of such vehicle otherwise than wholly and exclusively in the performance of his duties 6. Inserted by the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1981 7. Inserted by the Finance Act, 1989, w. e. f. 1- 4- 1990. Earlier, it was omitted by the Finance Act, 1974, w. e. f. 1- 4- 1975.