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


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.