Calculation of Deductible Amount from Entertainment Allowance for Suresh

Step 1: Calculate the Total Monthly Income
Suresh's total monthly income can be calculated by adding his salary, dearness allowance, and entertainment allowance:
Total Monthly Income = Salary + Dearness Allowance + Entertainment Allowance
Total Monthly Income = 50000 + 55000 + 5000
Total Monthly Income = 110000

Step 2: Calculate the Taxable Income
The taxable income is calculated by subtracting the exempted portion of entertainment allowance from the total monthly income:
Taxable Income = Total Monthly Income - Exempted Portion of Entertainment Allowance

Step 3: Determine the Exempted Portion of Entertainment Allowance
The exempted portion of entertainment allowance is determined based on the rules set by the Income Tax Department. As per the current rules, the exempted portion of entertainment allowance is calculated as follows:

- 1/5th of the entertainment allowance or Rs. 5,000, whichever is lower, is exempted from tax.
- The remaining amount is added to the taxable income.

In Suresh's case, the exempted portion of entertainment allowance will be calculated as follows:

- 1/5th of the entertainment allowance = 5000/5 = 1000
- Rs. 1000 is less than Rs. 5000, so Rs. 1000 will be exempted from tax.
- The remaining amount of entertainment allowance that will be added to the taxable income = 5000 - 1000 = 4000

Step 4: Calculate the Deductible Amount from Entertainment Allowance
The deductible amount from the entertainment allowance will be the tax amount on the taxable income calculated in Step 2. The tax amount will depend on Suresh's income tax bracket and will be calculated as per the rules set by the Income Tax Department.

In conclusion, the deductible amount from entertainment allowance for Suresh will be the tax amount on Rs. 4000, which will depend on his income tax bracket.