As Per Income Tax Act, 1961 “Deduction for Entertainment Allowance & Deduction for Professional tax” includes:
i) A deduction in respect of any allowance in the nature of an entertainment allowance.
ii) A deduction of any sum paid by the assessee on account of a tax on employment.
Entertainment allowance deduction for govt employees is one-fifth of his basic salary or 5000 Rs. whichever is less.
For Non-govt employees, it is fully taxable.
Professional tax deduction is allowed for employees if it is paid by the employee.
Reference:
As Per Section 16(ii)(iii), Of the Income Tax Act, 1961-
The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely:—
(i) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less;
(ii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.