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Professional Tax on Insurance Agents under Maharashtra PT ACT

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Meera Tankariya

29 Points Posted on 21 June 2023

I have a query as under:

A person is working in a private company where his professional tax is deducted by employer and paid. He is also working as an insurance agent for a general insurance company. whether insurance company also needs to deduct PT or not? If not then on what basis and whether any FORM needs to be collected from agent? under Maharashtra PT ACT.

Replies (5)

Quick Summary

This discussion clarifies Professional Tax (PT) obligations for individuals working as insurance agents in Maharashtra while also being salaried employees. The core question is whether an insurance company must also deduct PT if it's already being deducted by the primary employer. The consensus is that PT should not be deducted twice for the same individual, even if the salaried employment and agency work are considered separate professions. Providing proof of existing PT deduction, such as a certificate from the employer, is recommended to prevent double taxation.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 21 June 2023

Give the PT deduction certificate from employer to general insurance company along with request letter for not deducting PT again over same person.

Meera Tankariya

29 Points Posted on 21 June 2023

Sir, in some cases PT dept argues that salaried employment and agency are 2 different profession hence PT to be deducted by both. Is it valid?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 21 June 2023

Agency, when considered as a business entity is different, but PAN of proprietor of the agency and the employee (salaried in another firm) being same, PT cannot be charged over same person TWICE!!!

So, the argument has no stand.

E.G. A person being Partner in different firms, need not pay PT in every firms.