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Professional tax of director

aasita (ACA) (387 Points)

15 April 2010

Can company pay professional tax of director and claim it as expenses?

According to me company may do so but then it has to included in directors remuneration as professional tax is personal liability.And director shall not get deduction of professional tax in its form 16 as same has been claimed as expenses by the company.

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2 Replies

Ankit (CA) (45 Points)
Replied 15 April 2010

aasita

it the director is exc. director liability of P.T. is personal in nature however if the company is paid such liability than if Employees liability meet by Employer & than it should be incl. in the director salary as per Sec 17 (3) (iv) & director can claim the Deduction of PT in Form -16 & company can claim the payment as cost of Employment in Income tax.

it the director is non exc. director liability of P.T. is personal in nature however if the company is paid such liability than Director liability meet by Company it will incl. in Business Income of Director as per Section 28 & company can claim the payment as cost of Employment in Income tax.