No it can't be claim neither under section 37(1) and nor as a indirect tax.
| Originally posted by : Nishad | ||
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No it can't be claim neither under section 37(1) and nor as a indirect tax. |
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Dear pradeep wagh, Professional tax is a direct tax. professional tax is deducted same as TDS. How can salaried person required to pay indirect tax ?
As you know direct tax is directly linked to the income of a person & salary is direct income of a person. So professional tax is direct tax.
Yes we can claim it
| Originally posted by : PRITI TRIPATHI | ||
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Yes we can claim it | ![]() |
dear,
plz provide ref. for this ??
https://charteredknowledge.blogspot.in/2013/12/section-371-business*xpenditure.html
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..
Professional tax paid by a person carrying on a business or trade can be allowed to him as a deduction under section 37(1)
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