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5531 Points
Joined December 2013
As far as my knowledge is concerned, professional tax is a direct tax whether paid by the company for itself or on behalf of its employees. In case it is paid by the company for itself, it can be claimed u/s-37. But if it is paid on behalf of the employee, whether as a perquisite or as a libility after deducting it from the salary of the employee, then it cannot be claimed by the company but by the employee only u/s-16, after including it first in his salary income, provided if its a perquisite for the employee. Moreover, it is applicable to some states of india only.
Open for any further valuable comments & suggestions from my fellow members..