If a particular person is appointed as a employee from February 15 and a particular firm has obtained a deduction of professsion tax of a particular month till march 14 and after which the profession tax from 15th march to 31st March is not taxable is correct from the point of accounting and Income tax Act? Please reply at the earliest?
15 January 2008
Profession tax essentially levied by City municipal corporations. If the change of employment is across such corporations, then it may not be possible for him to avoid paying multiple profession taxes. If the change is within the corporation limits, he can show proof he has paid earlier and he will not be taxed
27 February 2008
But why you are asking from the point of view of Income tax? As far as Income tax is concerned any payment made towards profession tax is allowed as deduction
CAclubindia
