Profession tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Hi,
we are in Gujarat. My query is about deduction of Profession Tax. As per Profession Tax Act Gujarat 1976; It is being deducted on gross salary which included pay or wages, dearness allowance and all other
remunerations received by any person on regular basis, whether payable in cash or kind.
and also include perquisites, and profits in lieu of Salary as defined in section 17 of the
Income-tax Act, (43 of 1961). 1[but does not include any form of bonus or gratuity]"

Now my query is, if we pay Medical Exp. reimbursement or Leave Travel Assistance or any such type of allowance. Should we consider this for deduction of Tax.

Regards,

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
Follow

09 September 2011 Medical expenses as reimbursement not as allowance and upto the limit exempted under IT Act i.e. Rs.15000/-per annum not forming the part of salary, further as regards LTA if claimed as allowance is a part of salary but in case reimbursed on actual basis per provisions of exemptions taking into consideration the IT Act, not forming the part of salary.
However, the above views generally accepted but it is to be determined in reference particularly to Profession Tax Act, Gujrat.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Thank Sir,
But if LTA paid is 30000/- out of which Rs.10000/- is exempt hence should we consider Rs.20000/- in Gross salary for Profession TAx deduction.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Thank Sir,
But if LTA paid is 30000/- out of which Rs.10000/- is exempt hence should we consider Rs.20000/- in Gross salary for Profession TAx deduction.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Thank Sir,
But if LTA paid is 30000/- out of which Rs.10000/- is exempt hence should we consider Rs.20000/- in Gross salary for Profession TAx deduction.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Thank Sir,
But if LTA paid is 30000/- out of which Rs.10000/- is exempt hence should we consider Rs.20000/- in Gross salary for Profession TAx deduction.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2011 Thank Sir,
But if LTA paid is 30000/- out of which Rs.10000/- is exempt hence should we consider Rs.20000/- in Gross salary for Profession TAx deduction.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
Follow

09 September 2011 Yes non-exempted LTA will be part of the gross salary income.

Upgrade to CAclubindia Pro. Subscribe Now!