Form 16

This query is : Resolved

Sankar Chakraborty (Querist)
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15 March 2012 1) Is entertainment allowance is only for govt employees ?

2) in a pvt ltd company
employee - male 38 years
basic - 6500.00
fixed DA 2000.00
HRA 4600.00 is taxable or not
spl. allowance 4000.00 is taxable or not
total 17100/-
deductions
p.tax 130
PF 1020
net pay 15950/- by cheque

in one month Form 16
gross salary 17100/-
less: allowances u/s 10 HRA Rs. 4600
less p.tax 130/-

Less : PF Rs. 1020/- u/s 80C

Is it Right ???
Please explain

Shaik

Shaik (Expert)
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15 March 2012 Dear Sankar,

1).Entertainment Allowance is only for govt emp, that is u/s 16(11) Rs. 5000.

2). HRA need to be calculated as per given details.

HRA Least of the following
1) Amount received from employer
2) 40% of salary
3) Rentpaid - 10%salary
salary means Basic