Rohan, an employee of State Government received ₹ 1,000 per month as entertainment allowance during the financial year 2020-21. His salary excluding any allowance, benefit or other perquisite for the year is ₹ 8,40,000. The amount of entertainment allowance eligible for deduction is:
A. ₹12,000
B. ₹ 1% of the salary ie. ₹ 8,400
C. ₹ 5,000
D. (₹ 12,000 – ₹ 8,400) = 3,600
Answer:C
Rohan, an employee of State Government received ₹ 1,000 per month as entertainment allowance during the financial year 2020-21. His salary excluding any allowance, benefit or other perquisite for the year is ₹ 8,40,000. The amount of entertainment allowance eligible for deduction is:
A. ₹12,000 B. ₹ 1% of the salary ie. ₹ 8,400 C. ₹ 5,000 D. (₹ 12,000 – ₹ 8,400) = 3,600