Section – 16, Income-tax Act, 1961
Deductions from salaries.
16. The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—
(ia) a deduction of 64[fifty thousand] rupees or the amount of the salary, whichever is less;
(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.