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Deduction u/s 16(iii)

Pritam (CDO) (61 Points)

26 March 2022

Explain the steps as to how Professional Tax be claimed as a deduction u/s 16(iii) by a Handicapped employee ? Does it need to be adjusted while changing a job in the state government ?

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58245 Points)
Replied 26 March 2022

There is no separate Provision for handicapped w.r.t professional tax.

The amount deducted by employee can considered for tax calculation

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ALAMELU.N.N (student) (258 Points)
Replied 27 March 2022

Being handicapped is not relevant to claim professional tax deduction. You may claim the total amount deducted and paid by both your employers put together

Eswar Reddy S (CFO- at NHTF) (58245 Points)
Replied 28 March 2022

The amount deducted by employers can considered for tax calculation

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 18 April 2022

Under Section 16(iii), a deduction from salary can be claimed by the taxpayer on account of professional tax paid. The deduction for professional tax will be allowed in the year in which the tax is actually paid by the employee. Professional tax due but not paid cannot be claimed as a deduction from salary.