Pt deduction on bonus

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2013 Dear Sir/Madam

Is PT deduction applicable on Bonus ?

E.G.
Person "A" have been working in a Company from last one year and For 12 Months he got salary @ rs.10500/- P.M after deduction of P.T.Rs.200/-.So he has already fulfill the condition of P.T. Rs.2500/- P.A.
Now the company has declare bonus for diwali based on las year. So company will have to deduct the P.T on bonus or not ?"

Sanket

Sanket (Expert)
Follow

21 October 2013 According to me, Profession Tax is to be deducted from the
Bonus amount also. It may be exempted
only when the local administration to
which the tax is payable permits to do so. Wait for the other comments. :-)

@VaibhavJ

@VaibhavJ (Expert)
Follow

21 October 2013 Hi,

No reason being:

Salary or Wages includes pay, dearness allowance and all other remunera
tions 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]

However if it is paid on monthly basis then PT is applicable.

Thanks//VaibhavJ

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2013 According to me : PT should not deduct on bonus. Becasue as per PT Act a person having salary exceed Rs.10000/- should pay PT Rs.2,500/- P.A and a person having salary exceed Rs.5000/- but not more than Rs.10000/- should pay P.T Rs.2100/- P.A.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

10 August 2024 Example:
State A:

In State A, Professional Tax is applicable on all salary components, including bonuses. If the PT slab rate is ₹2,500 per year for salaries above ₹5,00,000 and the bonus is ₹50,000, the PT will be calculated on the total salary including the bonus.
State B:

In State B, the Professional Tax regulations specify that bonuses are exempt from PT. Therefore, PT will only be deducted from regular salary payments and not from the bonus.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

DHANASHRI KARMARKAR

CA Aakarsh Jain

Michael & Co.

divakar podaturu

sachingurav

Subscribe Now

Pt deduction on bonus

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA