About Professional Tax
This query is : Resolved
Mukund Patel
(Querist)
17 June 2009
professional tax is calculated on Basic salary or Gross salary ?
Please give me Valuable Reply...
Thanking You
Please give me Valuable Reply...
Thanking You
CA Binal Shah
(Expert)
17 June 2009
hi,
It is calculated on basic salary
It is calculated on basic salary
18 June 2009
Dear Mukund,
As Professional tax is always state specific and the definitionof salary or wages may vary from state to state.
But on a general basis following is the definition :
Salary or Wages includes pay, dearness allowance and all other remunerations including allowances received by any person on a regular basis whether payable in cash or kind and also includes perquisites and profits in lieu of salary as defined in Section 17 of the Income Tax Act, 1961 (No. 43 of 1961) but does not include bonus in any form and on any account, gratuity and pension]
On the basis , all the components of the salry structure defined by you are [paid to the employees are paid on a regular basis. Hence Professional tax shall be levied on The gross salry and not on Basic only.
Nazir
As Professional tax is always state specific and the definitionof salary or wages may vary from state to state.
But on a general basis following is the definition :
Salary or Wages includes pay, dearness allowance and all other remunerations including allowances received by any person on a regular basis whether payable in cash or kind and also includes perquisites and profits in lieu of salary as defined in Section 17 of the Income Tax Act, 1961 (No. 43 of 1961) but does not include bonus in any form and on any account, gratuity and pension]
On the basis , all the components of the salry structure defined by you are [paid to the employees are paid on a regular basis. Hence Professional tax shall be levied on The gross salry and not on Basic only.
Nazir
CA Nitin Wadhwani
(Expert)
19 June 2009
Gross Salary.
Agree with Mr.Nazir.
Agree with Mr.Nazir.
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