What are the deductions allowed from salary income?

The Income Tax Act allows certain deductions from salary income to arrive at the taxable amount. These include standard deduction, entertainment allowance, professional tax, leave travel concession, and deductions under sections 80C, 80D, 80DD, 80DDB, 80E, 80G, and 80U. The employee must report income and claim deductions in the prescribed Form 16.

Legal Provision: Sections 16 and relevant sections under Chapter VI-A of the Income Tax Act, 1961

Supporting Case Law:
– CIT v. Greenfield TEA & Rubber Co. Ltd. (2015) – Delhi High Court – 378 ITR 198
– Link: https://indiankanoon.org/doc/34589927/
– Ratio: This case clarified the allowability of certain deductions from salary income.

📚 Related Resources

💡 These resources provide additional information on related topics.

Prashant Thakur

The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.