Perquisite/allowances received outside India by an employee who is citizen of India + Government employee + renders services outside India under Income Tax Act, 1961: Section 10(7)
10. In computing the total income of a previous year of any person, the income in the below clause shall not be included—
(7) Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India is exempt
Reference:
As Per Section 10(7), Of the Income Tax Act, 1961-
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.