Question

A private employee received a salary Rs. 120000
and entertainment allowance Rs. 10000 during
the previous year, he spends Rs. 6000 on
entertainment. he is entitled to deduction under
section 16(ii).
a. Rs. 10,000
b. Rs. 5,000
C. Nil
d. Rs. 6,000​

Answer 1

Answer:

d. Rs.6000

Explanation:

A private employee has entertainment allowance10000 but he spend rs.6000

Answer 2

He is entitled to deduction under section 16(ii) is Rs. 6000. (d)

1. According to deduction under section 16(ii), the basic salary is 1,20,000.
2. Now finding the 1/5th of basic salary that is 24,000.
3. Now the standard deduction is 5,000.
4. For deduction, (2) and (3) one which is a lesser amount is considered to deduction under section 16(ii).

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