Deductions from salaries
(1)
The income chargeable under the head "Salaries" shall be computed after making the deductions of the nature as mentioned in column B of the following Table, to the extent as mentioned in column C of the said Table:— Table Sl. No. Nature of sum Amount of deduction A B C 1. Sum paid by the assessee as a Entire amount. tax on employment as per article 276(2) of the Constitution, leviable by or under any law. 2. Standard deduction. (a) ₹ 75,000 or the salary, whichever is less, where income-tax is computed under section 202(1);
(b)
₹ 50,000 or the salary, whichever is less, in any other case. 3. Death-cum-retirement gratuity Entire amount. received as referred to in sub-section (2)(g). 4. Payment of retiring gratuity Entire amount. received under the Pension Code or Regulations applicable to the members of the defence services. 5. Gratuity received under the Amount received, as Payment of Gratuity Act, 1972 restricted to the amount (39 of 1972). calculated as per the provisions of section 4(2) and (3) of that Act. 6. Any other gratuity received by Amount being minimum an employee— of— (a) actual gratuity received; (i) on his retirement; or (b) amount specified by the (ii) on his becoming Central Government, by incapacitated before such notification, having regard to retirement; or the limit applicable in this (iii) on termination of his behalf to the employees of the employment. Central Government; and A B C (c) half month's salary for each completed year of service, calculated as under:— 1 Amount = (A x B) 2 where,— A = average salary for ten months immediately preceding the month when event occurs; B = number of such completed years. 7. Payment in commutation of Entire amount. pension received— (a) under the Civil Pensions (Commutation) Rules of the Central Government; or (b) under any similar scheme applicable to–– (i) the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union, [such members or holders not covered under (a)];