18 November 2009
i join the co. in jan 09..so my income was not taxable ..so i did not filed return..but my co..has deducted Professional tax from my salary for 3 months...can i take deduction of this PT in next return a.y.09-10...what should i do if want to claim this PT. ..plz give some suggestion
18 November 2009
The deduction will be allowed in the year in which the profession tax is actually paid by the employee. In other words deduction cannot be preponed or postponed. For details refer section 16(iii) of the Income tax Act,1961.
19 November 2009
Hi, salary income is calculated as under: Gross salary XX Less: Deduction u/s 16- profession tax paid XX Net taxable salary XX hence if there is no taxable salary, there is no question of benefit u/s 16(iii). Thanks and regards, CA Shakuntala Chhangani
CAclubindia
