P tax liability

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This query is : Resolved

Quick Summary

Professional Tax (P Tax) is generally not payable for months where an employee is absent for the entire period and therefore receives no salary. The Professional Tax Act states that employers are liable to deduct and pay this tax on behalf of employees from their salary or wages. This implies that P Tax is only levied when an employer is obligated to pay salary or wages.

AJAY SHARMA

AJAY SHARMA (Querist)

25 August 2021 If any Persons Salary Comes under P Tax Liability. And in any month he was Absent for whole month. Then Whether P tax to be payable or not for the Respective month in which he was absent?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

26 August 2021 PT is not payable in this case.

VANAJA RANI

VANAJA RANI (Expert)

27 August 2021 Employer's liability to deduct and pay tax on behalf of employees:
The tax payable under Professional Tax Act, by any person earning a salary or wage, shall be deducted by his employer form the salary or wage payable to such person, before such salary or wage is paid to him, and such employer shall, irrespective of whether such deduction has been made or not, when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons.

Hence as per above provision we can draw a conclusion that professional tax will be levied when employer liable to payable/paid salary/wage.

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