India - Income Tax Act 2010 - Saarc

1.145 CH. IV - COMPUTATION OF TOTAL INCOME FROM SALARIES S. 17(1)79[(ii) a deduction in respect of any allowance in the nature of an entertainmentallowance specifically granted by an employer to the assesseewho is in receipt of a salary from the Government, a sum equal to onefifthof his salary (exclusive of any allowance, benefit or otherperquisite) or five thousand rupees, whichever is less;]80[(iii) a deduction of any sum paid by the assessee on account of a tax onemployment within the meaning of clause (2) of article 276 81 of theConstitution, leviable by or under any law.](iv) 82 [***](v) 83 [***]“Salary”, “perquisite” and “profits in lieu of salary” defined.8417. 85 For the purposes of sections 15 and 16 and of this section,—(1) “salary” 86 includes 86 —(i) wages;(ii) any annuity or pension;(iii) any gratuity 86 ;(iv) any fees 86 , commissions, perquisites or profits in lieu of or inaddition to any salary or wages;(v) any advance of salary;(Contd. from p. 1.144)1-4-1983, Finance Act, 1983, w.e.f. 1-4-1984, Taxation Laws (Amendment) Act, 1984, w.r.e.f.1-4-1975, Finance Act, 1985, w.e.f. 1-4-1986, Finance Act, 1986, w.e.f. 1-4-1987, Finance Act,1988, w.e.f. 1-4-1989, Finance Act, 1989, w.e.f. 1-4-1990, Finance Act, 1992, w.e.f. 1-4-1993,Finance Act, 1993, w.e.f. 1-4-1994, Finance (No. 2) Act, 1996, w.e.f. 1-4-1997, Finance Act,1997, w.e.f. 1-4-1998 and Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.79. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002. Earlier clause (ia) was inserted by theFinance (No. 2) Act, 1996, w.e.f. 1-4-1997 and clause (ii) was amended by the Finance(No. 2) Act, 1980, w.e.f. 1-4-1981, Finance Act, 1997, w.e.f. 1-4-1998 and Finance (No. 2) Act,1998, w.e.f. 1-4-1999.80. Inserted by the Finance Act, 1989, w.e.f. 1-4-1990. Earlier, it was omitted by the FinanceAct, 1974, w.e.f. 1-4-1975.81. Article 276(2) of the Constitution reads as under :“276. (2) The total amount payable in respect of any one person to the State or to any onemunicipality, district board, local board or other local authority in the State by way oftaxes on professions, trades, callings and employments shall not exceed two thousand andfive hundred rupees per annum.”82. Omitted by the Finance Act, 1974, w.e.f. 1-4-1975. Earlier, clause (iv) was substituted/amended by the Finance Act, 1968, w.e.f. 1-4-1968, the Finance Act, 1969, w.e.f. 1-4-1970,the Finance Act, 1970, w.e.f. 1-4-1971 and the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972.83. Omitted by the Finance Act, 1974, w.e.f. 1-4-1975.84. See also Circular No. 1/2010, dated 11-1-2010, Circular No. 9/2003, dated 18-11-2003,Circular No. 603, dated 6-6-1991 and Circular No. 710, dated 24-7-1995. For details, seeTaxmann’s Master Guide to Income-tax Act.85. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.86. For the meaning of the terms/expressions “salary”, “includes”, “fee . . . in addition to anysalary” and “any gratuity”, see Taxmann’s Direct Taxes Manual, Vol. 3.