Deduction under Section 16
Standard deduction, entertainment allowance and professional tax a salaried person can deduct under section 16.
Switch calculator — current: Deduction under Section 16
Your details
Deduction under section 16
- Standard deduction [16(ia)]
- ₹0
- Entertainment allowance [16(ii)]
- ₹0
- Tax on employment [16(iii)]
- ₹0
Your answer
₹ —
Still needed: your gross salary.
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For guidance only — not tax advice. Every figure is drawn from BharatX’s verified rule book, with the sections and rules shown alongside it.
Deduction under Section 16: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
Section 16 gives salaried people three deductions: a standard deduction (16(ia)), entertainment allowance for Government employees (16(ii)), and professional tax (16(iii)).
Section 16 gives salaried people three deductions: a standard deduction (16(ia)), entertainment allowance for Government employees (16(ii)), and professional tax (16(iii)). The standard deduction is ₹75,000 under the new regime and ₹50,000 under the old; entertainment allowance and professional tax apply only under the old regime. The total cannot exceed your gross salary.
- 16(ia) Standard deduction: ₹75,000 (new regime) or ₹50,000 (old regime), capped at gross salary.
- 16(ii) Entertainment allowance (Government employees, old regime only): least of allowance received, ₹5,000, and 20% of basic salary.
- 16(iii) Professional tax: the tax on employment actually paid (old regime only).
- Total deduction = min(gross salary, standard + entertainment + professional tax).
Worked example
Total deduction = ₹57,500.
AY 2025-26, old regime, Government employee, gross ₹10,00,000, basic ₹5,00,000, entertainment allowance ₹8,000, professional tax ₹2,500.
- Standard = ₹50,000.
- Entertainment = min(8,000, 5,000, 1,00,000) = ₹5,000.
- Professional tax = ₹2,500.
Total deduction = ₹57,500.
Frequently asked questions
What is the standard deduction for salary?
₹75,000 under the new regime and ₹50,000 under the old regime, limited to your gross salary.
Who can claim entertainment allowance?
Only Government employees, and only under the old regime — the least of the allowance, ₹5,000 and 20% of basic salary.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.