Entertainment allowance
Stub article on the entertainment allowance deduction. A full encyclopedic entry is pending.
What this article will cover
A full salary-calculator article on the entertainment allowance will cover the deduction that Section 16(ii) of the Income-tax Act, 1961 allowed to a government employee and to no other class of taxpayer, computed as the least of Rs. 5,000, one-fifth of basic salary, or the entertainment allowance actually received, the mechanism by which the allowance was first added to salary and then deducted, and its withdrawal from 1 April 2026: the Income-tax Act, 2025 enacts no counterpart to Section 16(ii), so the deduction is unavailable in both regimes from the tax year 2026-27. It will carry internal links to neighbouring topics on salary-calculator.in and a references section pointing to primary sources.