26 December 2008
In a company PT is deducted for 12 months & additionally on Bonus also ie., one month Salary. Is it correct for the purpose of Profession Tax (Karnataka Tax on Profession, Trades. Calling and Employment Rules, 1976) ? & what is the impact of the deduction in Income Tax Law?
26 December 2008
Only twelve months salary should be subject to deduction. Not the Bonus. Income tax people may ask you to add back excess payment. For your employees they not be able to claim a 13 months PT dedcution..
CAclubindia
