Should professional tax be deducted from stipend
This query is : Open
04 February 2019
Dear all,
I am an Article doing my Articleship under a CA in Mumbai. My Current Stipend is Rs.8,000/-pm hence my firm is deducting PT from my stipend as it exceeds the Limit of Rs. 7,000/-pm.
Please guide me whether he should deduct it or not.
If possible,in case of Caselaws, Kindly provide it of Maharashtra Jurisdiction, or otherwise Give the reference of the Act
Thank You!!!
I am an Article doing my Articleship under a CA in Mumbai. My Current Stipend is Rs.8,000/-pm hence my firm is deducting PT from my stipend as it exceeds the Limit of Rs. 7,000/-pm.
Please guide me whether he should deduct it or not.
If possible,in case of Caselaws, Kindly provide it of Maharashtra Jurisdiction, or otherwise Give the reference of the Act
Thank You!!!
04 February 2019
PT is applicable on monthly Slab of Income, if it exceeds above limit including stipend.
05 February 2019
But sir PT is deducted on Salary of Individual and as per sec 2(h) of Pt act "salary" or "wage" includes pay or wages, dearness allowance and all other remunerations received by any person on 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, but does not include bonus in any form, and on any account or gratuity;
and Income-Tax Appellate Tribunal, Jaipur Bench in Sudhir Kumar Sharma versus ITO (1983) 15 Taxman
100 (Mag.).
The Tribunal in this case had held that the stipend received by an articled clerk from a Chartered Accountant was exempt under Section 10(16). The reason given by the Bench was that the stipend was
paid to meet the cost of books, coaching fees, examination fees and so on.
and hence we are not earning Salary as per the above case
Hence PT should not be deducted , right?
and Income-Tax Appellate Tribunal, Jaipur Bench in Sudhir Kumar Sharma versus ITO (1983) 15 Taxman
100 (Mag.).
The Tribunal in this case had held that the stipend received by an articled clerk from a Chartered Accountant was exempt under Section 10(16). The reason given by the Bench was that the stipend was
paid to meet the cost of books, coaching fees, examination fees and so on.
and hence we are not earning Salary as per the above case
Hence PT should not be deducted , right?
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