Profession tax

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This query is : Resolved

Suresh N (Querist)

18 December 2014 Whether Profession Tax paid by employer (out of his pocket) for the past 3 years without any deduction from the employee is allowed as deduction u/s 37 (read with sec. 43B)?

Amol S Joglekar

Amol S Joglekar (Expert)

18 December 2014 Yes, it is very much allowable. No need to look into 43B....because it will be treated as SALARY paid to employee

Suresh N

Suresh N (Querist)

18 December 2014 However, the Assessing Officer saying that, the employer can collect and pay (Agent to the Government) and he can't claim as expenditure and disallowed. In this case, he paid from his packet. Because the profession tax paid on behalf of employees, who were no more in the organisation. Is there any relevant case law to treat as Salaries?

Amol S Joglekar

Amol S Joglekar (Expert)

18 December 2014 Which accounthead did you debit?
In the high esteem of DISCLOSURE, did you debit PROFESSIONAL tax or Salary?

Suresh N

Suresh N (Querist)

23 December 2014 Dear Sir,

Sorry for the delay reply.... Profession Tax has been Debited.

Amol S Joglekar

Amol S Joglekar (Expert)

29 December 2014 that is why? You debit SALARY.

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