Professional/Employment TAX

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Manoj Narang (Querist)
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31 August 2010 Plz help me i m unable to understand this concept.

Why Professional tax deduction is from the gross salary of the employee rather than from his tax liability.......

Suppose Gross total Income-- 202000
Professional Tax Paid(Py Yr)- 2000

Taxable income---------------200000

why it is not deducted from the tax libility of the assessee like

Tax liability(200000-160000)*10% =4000
Professional Tax paid =2000
Tax payable =(2000)

It could be a very silly type question but i m unable to get it answered. plz plz plz plz any body help me

CA SMR

CA SMR (Expert)
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31 August 2010 In the above example u have deducted PTax from Gross Total Income as well as from the income tax payable.Obviously the deduction cannot be allowed twice.