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Report No. 12

16. Deductions.-

The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely-

(i) any amount not exceeding five hundred rupees, expended by the assessee on the purchase of books and other publications necessary for the purpose of his duties;

[Section 7(2)(0]

(ii) 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 special allowance, benefit or other perquisites) 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 was in receipt of such, entertainment allowance regularly from his present employer 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 special allowance, benefit or other perquisites) or seven thousand five hundred rupees, whichever is the least.

[Section 7(2)(ii)]

(iii) where the assessee is not in receipt of a conveyance allowance whether as such or as part of his salary, and owns a conveyance which is used for the purposes of his employment, such sum as the Income-tax Officer may estimate in respect of such use as representing the expenditure incurred by him in its maintenance and as representing its normal wear and tear;

[Section 7(2)(iia) proviso]
[Section 7(2)(iia), main para.]

(iv) any amount actually expended by the assessee, not being an amount expended on the purchase of books or other publications, or on entertainment or on the maintenance of a conveyance, which, by the conditions of his service, he is required to spend out of his remuneration wholly and exclusively in the performance of his duties.

[Section 7(2)(iii)]



Income-Tax Act, 1922 Back




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