Hey !
I'm new to this forum. Hope anyone of you could help me from the problem i'm currently facing.
What are the implication of professional tax deducted in income tax rules ?
if any employee salary is paid after deducting relevant professional tax applicable, then how is that professional tax is accounted for when the annual income tax is computed ? Is the amount of professional tax reduced from the total income tax due or is the amount of professional tax reduced from the gross total income before calculating the income tax on the total income ?? some confusion in this aspect which is not being cleared by so called professionals... need your help in clearing, as applicable in Indian Income Tax Law...
Expecting early response to this problem.
Sunil P.S.

Chartered Accountant
+5 Others

From your gross salary,professional tax amount is deducted.
rest becomes your net earnings from salary.
Tax is calculated on .......(net earnings- Savings under sec.88)
I think this is simple enough to understand.

From India , New Delhi
Professional tax deducted when you received salary from your employers. its also slab wise deduction.
suppose your received Rs.4000/- as salary
So your P.T is Rs.20/- because below Rs.3000/- its free from PT but you are above it so your slab is Rs.3000/- to 5999/- its first slab its PT is Rs.20/- so your Net salary which you will be receivable is Rs.3980/- ok. Now Clear you understanding.
its also deducted from your total income in your income tax return

From India , New Delhi
Dear Sir,
Please make your mind very clear, u wont have to pay income tax on thew professioanl tax deducted from ur salary, Icome tax is only deducted from following mentioned income
Tax payable income== Gross salary- PT- Savings under 80C/80D
Hope this would be clear

From India , Delhi
Dear... I want to know whether Medical reimbursement is included in gross salary for calculation of PT. regards Ravindra
From India , Mumbai
Dear Sunil,
Be clear that professional tax is a state subject which is levied & collected by the state government itself. On the other hand Income Tax is a Centra Subject which is levied & Collected by Central Government. Different State Government rates for professional tax are different. While making computation of income tax the Central Governement give deduction for professional tax which is collected by respective state government from your salary. So, Compute the tax after giving effect of professional tax already deducted by your employer.
Best Regards,
CA Hitesh Agrawal
Baroda ( Gujarat)

From India , Vadodara
let me know slab rates for deduction of pt and its applicability and due date fro depositing of tax and return filing :unsure:
From India , Warangal
Professional tax deducted from salary is eligible for deduction while calculating income tax on gross income. The amount paid as profession tax should be deducted from "Income from Salary" head for computation of gross total income.
Hope it will help you.

From India , Mumbai

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