Question
What is the statutory limit u/s 16(ii) for deduction of
entertainment allowance in case of government employee?Solution
As per section 16(ii), Government employees can claim a deduction for entertainment allowance by considering the lowest from the following: 20% of an individual’s basic salary Rs.5,000 Entertainment allowance amount received in the financial year This deduction is not available for individuals working in private firms or any statutory or local authorities.
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