did anybody can tell me , what is the actual use of paying professional tax by a tax payer.
in short what govt. id using this money for an indiviual employee or employer.
Please let me know if any body is aware about
Rajeev (Partner) (24 Points)
30 March 2014did anybody can tell me , what is the actual use of paying professional tax by a tax payer.
in short what govt. id using this money for an indiviual employee or employer.
Please let me know if any body is aware about
Anshuman
(Article Assistant)
(87 Points)
Replied 31 March 2014
Hi,
Professional tax is liable to be deducted by the employer in case of salaried and wage earners. It is similar to income tax but is paid to the state govt rather than the central govt. The maximum amount to be paid per person is limited to Rs.2500. This amount so deducted on account of professional tax by the state govt. can be claimed as deduction under Section 16 of the Income Tax Act while calculating the total income from salaries and correspondinly in Gross total income of the person.
Regards,
Anshuman Prasad
anshuman.prasad.94 @ gmail.com
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