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Sec 16(iii)

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shilpi

student

423 Points Posted on 03 April 2020

Is there any maximum limit of professional tax for fin year 2019-20?

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Quick Summary

This discussion clarifies the maximum limit for professional tax for the financial year 2019-20. While Section 16(iii) of the Income Tax Act doesn't set a specific limit, the Constitution of India, under Article 276(2), caps the total professional tax payable by any individual to Rs. 2500 per annum. This constitutional limit is the governing factor for professional tax computation.

Deepak Gupta

CA Student

8353 Points Posted on 03 April 2020

ANS: Rs. 2500/-

Sec. 16(iii), a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law

Sec. 16(iii) does not prescribe any statutory limit.

Maximum levy of professional tax of Rs. 2,500/- has been given in Article 276(2) of the Constitution of India, as under,

“The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments shall not exceed two thousand and five hundred rupees per annum.”