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Employer contribution to professional tax

Varsha Preman (Article) (82 Points)

23 February 2017

Hi,

Should the employer contribute to the professional tax of employees? If yes, can you give the details?

Thanks in advance.

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 February 2017

Employer's contibution in case of PF or PT? No employer's contribution for PT of any employee..

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karamjeet singh (Student) (15 Points)
Replied 23 February 2017

Dear Varsha,

There is no requirement in hands of employer to contribute mandatory to professional tax on behalf of employees.

In case if employer does so,it will form a part of employees' salary but as per sec16(iii) of Income Tax Act,1961, employee can claim deduction of professional tax(as levied by a state under 276(2) of the Constitution) paid while calculating Gross Salary.

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