Pt deduction on bonus

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2013 Dear Sir/Madam

Is PT deduction applicable on Bonus ?

E.G.
Person "A" have been working in a Company from last one year and For 12 Months he got salary @ rs.10500/- P.M after deduction of P.T.Rs.200/-.So he has already fulfill the condition of P.T. Rs.2500/- P.A.
Now the company has declare bonus for diwali based on las year. So company will have to deduct the P.T on bonus or not ?"

Sanket

Sanket (Expert)
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21 October 2013 According to me, Profession Tax is to be deducted from the
Bonus amount also. It may be exempted
only when the local administration to
which the tax is payable permits to do so. Wait for the other comments. :-)

@VaibhavJ

@VaibhavJ (Expert)
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21 October 2013 Hi,

No reason being:

Salary or Wages includes pay, dearness allowance and all other remunera
tions including allowances received by any person on a regular basis whether
payable in cash or kind and also includes perquisites and profits in lieu of
salary as defined in Section 17 of the Income Tax Act, 1961 (No. 43 of 1961)
but does not include bonus in any form and on any account, gratuity and
pension]

However if it is paid on monthly basis then PT is applicable.

Thanks//VaibhavJ

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Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2013 According to me : PT should not deduct on bonus. Becasue as per PT Act a person having salary exceed Rs.10000/- should pay PT Rs.2,500/- P.A and a person having salary exceed Rs.5000/- but not more than Rs.10000/- should pay P.T Rs.2100/- P.A.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 Example:
State A:

In State A, Professional Tax is applicable on all salary components, including bonuses. If the PT slab rate is ₹2,500 per year for salaries above ₹5,00,000 and the bonus is ₹50,000, the PT will be calculated on the total salary including the bonus.
State B:

In State B, the Professional Tax regulations specify that bonuses are exempt from PT. Therefore, PT will only be deducted from regular salary payments and not from the bonus.