Professional tax
Madhurjya Bora
(Querist) 17 July 2012
This query is : Resolved
is professional tax comes under income tax?
A V Vishal
(Expert) 17 July 2012
No, it doesnot come under Income tax
Madhurjya Bora
(Querist) 18 July 2012
Then what the basis of professional tax and why this deduction made from our salary income,whether a deductee doesnot come in income tax slab..
A V Vishal
(Expert) 18 July 2012
The professional tax is a expense to the deductee since he has to pay it to carry out any trade, profession or calling, hence it is deductible from Income Tax.
Anirudh
(Expert) 18 July 2012
Dear Mr. Vishal,
The querist is an Assistant Auditor, a government servant. Then, where is the question of any expense (professional tax etc.) being allowed as a deductable expense?
RAJU O.F.,
(Expert) 18 July 2012
Professional Tax is is the amount to be paid to the local body like Municipal Corporation, depending upon your profession or slab of salary income, whereas Income Tax is amount tax paid to the Central Govt. depending upon your income. The amount paid under professional tax is deductible from IT calculation.
Anirudh
(Expert) 19 July 2012
Dear Mr. Raju,
Can you please indicate the exact provision of the I.T. Act under which such deduction is permissible?
ashutosh mishra
(Expert) 19 July 2012
Section 16(iii) in The Income- Tax Act, 1995
(iii) 7[ 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.]
Therefore Professional tax on employment or tax on employment levied by state under article 276(2) of the Constitution is allowed as a deduction from the Salary income.
Profession tax should have been paid by the Employee then only he is eligible to get deduction of the same.If he has not paid the same then no deduction would be allowed.
If such tax is paid by the employer on behalf of the employee then same amount will be treated as perquisites and then deduction will also be available to the employee.
Madhurjya Bora
(Querist) 20 July 2012
can a employee filling return against his deduction of professional tax ?
Anirudh
(Expert) 20 July 2012
Thanks Mr. Ashutosh for the information.
ashutosh mishra
(Expert) 21 July 2012
Q.can a employee filling return against his deduction of professional tax ?
ANSWER: YES HE CAN.
