Income From Salaries (Entertainment Allowance)

Entertainment Allowance 

It is an amount paid by an employee to its employees for the purpose of hospitality of the Customers,Clients & Guests. (For eg.tea,snack,lunch & dinner)

1. Government Employees 

[Allowance is deductible from Under Section 16 (ii)]

Least of the following Amount is allowed as deductions 

I. ₹ 5000

II. 20% of Basic Salary or 1/5 of Salary 

III. Amount of Entertainment Allowance 

2. Non-Government Employees

[(Allowance is not deductible from Under Section 16 (ii)]