Friday, February 10, 2012

Professional Tax Deductiont from salary-u/s16(iii)


on Friday, February 10, 2012

How we can  adjust professional tax  from individual  tax computation like maharastra case. ?

Section 16(iii) : As per section 16(iii) of Income tax act ,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.

Tax should be Paid By the Employee: 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 is allowed.
Deduction,if Tax paid by the employer on behalf of employee::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.

Maximum amount under article 276(2): As per article 276(2) of the constitution ,State Govt , municipality or other authority which is authorised under article 276(2) can impose professional tax on employment from a person maximum up to 2500/year.

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  1. Profession tax for the whole year is been deducted and paid in may 2012 in lumpsum by the company and in form 16 deduction been shown only upto february 2012 and the amount of march 2012 is not been taken into account then filing income tax return what should be taken into account as per form 16 or we can claim even the deduction of march 2012?? when asked to employer it is been said that the march profession tax will be added in next assessment year's deduction what is the solution??

    ReplyDelete
    Replies
    1. Professional tax is allowed on paid based. In govt or in may other department ,salary is due on first of next month though paid on last/second last day of the month . However salary for march is being paid in april.

      In present case as the amount for march has been paid in april , so it is not allowed in form 16. But if you are employed from last year then last march benefit may have been counted this year

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    2. But i have joined in this company from october 2011 then whether while the return i should take the profession tax deduction of march 2012

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    3. why there is deduction rs.300 in february month for those whose salary is more than 10000.

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    4. Rs 300 is deducted in Feb because a total of Rs 2500/- is to be deducted in a year, 12*200 = 2400, the extra Rs.100 is charged in Feb generally. Thats atleast true in Maharashtra, not sure about other states.

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  2. My salary is 9500 what will be my Professional tax and which month i have to pay

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  3. my salary is 9500 what will be my professional tax and which month i have to pay.. because last month they deduct 100 rupees in my salary. so only i am asking. Please confirm.

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  4. dear, the slab rate of profession tax as below:
    Profession Tax Slabs Rate Ratio:

    EMPLOYEE’S WHOSE MONTHLY SALARIES/WAGES ARE RATE OF TAX PAER MONTH
    Do not exceed Rs.2,000/- Nil
    Exceed Rs.2,000/- but do not exceed Rs.2,500/- Rs.30/-
    Exceed Rs.2,500/- but do not exceed Rs.3,500/- Rs.60/-
    Exceed Rs.3,500/- but do not exceed Rs.5,000/- Rs.120/-
    Exceed Rs.5,000/- but do not exceed Rs.10,000/- Rs.175/-
    Exceed Rs.10,000/- Rs.200/- (in Feb 300/-)

    ReplyDelete
    Replies
    1. This schedule is applicable on Basic or Take home or Gross Salary...?

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  5. In the year 2011-2012, pt less paid Rs.500/- , can v adjust in the current month and if we can how to fill the form?

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  6. I am a resident of Gujarat. I have my own business and i am also doing a job in another company. I am already paying professional tax of Rs 2400/year for my business. The place where i work also deduct professional tax of Rs 2400/ year from my salary. My questions is do i need to pay professional tax two times if i have my own business and also if i am employed at the same time.

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  7. Will you please let me know the due date for remittence of professional tax by statewise.

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  8. hi.. i am working in wipro,i am paying Profes. Tax Rs.200/mnth,but i got information that for handicapped PT is should not deducted please reply My query.

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    Replies
    1. prof. tax is state subject ,pls inform your state

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  9. hey can anyone tell me is profeesional tax dedectible on salary payable or salary paid

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    Replies
    1. Yes , as already explained , professional tax paid can be deducted from taxable salary u/s 16(iii)

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  10. plz someone tell me is professional tax deductutible on salary payable or salary paid in the state of bihar?

    ReplyDelete
    Replies
    1. Yes , it is deductible from salary as deduction ,no matter in which state it is being paid .

      So , professional tax paid in Bihar is also eligible for deduction

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  11. What is use / benefits of paying professional tax by individual

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    Replies
    1. You can deduct it from you salary income ,benefit is same as to pay income tax

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  12. i am working as a consultant (technical) for a central govt inst. in maharashtra. apart from 10% direct tax, the institute also deducts 2500rs. annually. my remuneration is rs. 33000 pm. is it normal practice to deduct both? in form 16a they mention only the 10% pm that they deduct. pls do guide me...

    ReplyDelete
    Replies
    1. yes , it is normal to deduct both the taxes .However you can claim refund for income tax(TDS) deducted as your tax will be much less than the amount deducted . further under income tax you can show net income after expenses incurred to earn the income.

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  13. I am working n US based company in Gujrat. My salary is 18000 per month. bt last month I joined on 26th Dec and worked for 6 days. so my pay for Dec comes to 3600. but they deducted 200 as professional tax. I believe that if pay is less than 5000 than pt should be 20. Please reply me? how is PT should be deducted?

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  14. can we claim pt as we claim general tax.

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  15. i am working in private firm in Maharashtra My salary is Rs.10500/- my employer has deduct Rs.200/- per month but my question is i have not get any salary slip or not deduct PPf i have recd salary in cash that mean i have in contract basis employe is it compulsary to paid PT

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  16. Any Deduction is available to Employee if such Profession tax is paid by service provider(Employer)?

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    Replies
    1. No deduction to employee if employer has paid the professional tax and has not deducted from employee's

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  17. Thanks For The Valuable Explanation Friend.........

    ReplyDelete
  18. Is Tax is levied on under construction property ?

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  19. hi
    i don't know what is professional tax and why is deduction form your salary and i have pay income tax also
    please help me

    ReplyDelete
  20. hi
    i don't know what is professional tax and why is deduction form your salary and i have pay income tax also
    please help me

    ReplyDelete
  21. hi,
    I am working in transport company in maharashtra. also the company's registered office is in west bengal & My salary is Rs. 4500/- per month. i want to know that this amount is taxable or not

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  22. hi
    Do we need to inform to PT office in case of change of office address n how?

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  23. is there any challan for dopositing prof tax for bihar state employees if the same could not be deducted from salary.

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  24. If month of feb salary is 10000 and in march 40000, and the salary will be paid in the month of april together.then what will be the p tax.either calculation should be monthwise or in the basis of gross income of the month.

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  25. I am employed by a indian company, but deputed to an international location for long term, As a projected NRI, no income tax is deducted by the compay, however, the professional tax is being deducted. Is this a fair thing to do ?

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  26. How much interest or penalty for late payment of professional tax?

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  27. I am a senior citizen. age 73, working in a publishing company in New Delhi. I get Rs.25,000 pm. The company has started deducting Rs.2500 pm. Is it correct? I am told that the minimum income should be Rs.30,000. Which is correct?

    ReplyDelete
    Replies
    1. They have appointed as a professional not as an employee and tds on professional fees is deductible @ 10 % if payment is more than 30000 in year.(not per month or at a time)
      so company is deducting at correct rate and company will provide you tds certificate on quarterly basis.

      you can claim refund of excess tds deducted from income tax department after filing income tax return

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