25 January 2008
This is an examination question. it reads as under:- Total professional tax paid is Rs.5000/-. out of this, Rs.4000/- is paid by employer and Rs.1000/- is paid by employee. what will be the deduction from salary?
25 January 2008
Net deduction will be 1000 only. because first we have to add 4000 in gross salary income then to deduct 5000 as deduction under section 16, so net is 1000 only.
25 January 2008
The employer will have to deduct full amount of 5000/- in form-16 since PT is paid to the govt and deduction is claimed by the employer as salary expenses. Further the asmount of Rs.4000/- paid by employer on behalf of employee shall be added to employees income by way of perquistes(employees obligation met by employer).
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