The Income-tax Act, 1961Central Act · Act 43 of 1961
Repealed. This text is published for reference. It is not in force, and it should not be relied on as current law without checking what replaced it. Repealed by the Income-tax Act, 2025, with effect from 1 April 2026
Deductions from salaries.
The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :—
(i) [***]
(ia) a deduction of fifty thousand rupees or the amount of the salary, whichever is less:
[Providedthat in a case where income-tax is computed under clause (ii) [or clause (iii)] of sub-section (1A) of section 115BAC, the provisions of this clause shall have effect as if for the words "fifty thousand rupees", the words "seventy-five thousand rupees" had been substituted;]
(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;
(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.
