Can professional tax paid be claimed as expense by company

Mihir (Wealth Manager) (5293 Points)
Replied 04 December 2013

Admissible expenses.

Circular no. 16 dated 18.09.1969

CA PRIYUL SHAH (JOB) (901 Points)
Replied 04 December 2013

Only admissible if paid for own business. If paid on behalf of employees then it will not admissible.

CA KARAN MAINI (Practising CA) (106 Points)
Replied 21 December 2013

Professional tax paid by company is allowed as deduction us sec. 37(1) and subject to sec. 43B deduction is allowed on actual payment on or before due date of return of income us 139(1)

0100_Krishna Dev Singh (4 Points)
Replied 01 April 2022

Can interest on late payment of professional tax is allowed in pgbp for company?

0100_Krishna Dev Singh (4 Points)
Replied 01 April 2022

Can interest on late payment of professional tax is allowed in pgbp for company?

Atul Jain (6 Points)
Replied 07 June 2022

Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

Atul Jain (6 Points)
Replied 07 June 2022

Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

https://businesscutter.com/why-should-one-open-a-demat-account-online-in-india/

Musrath Shaik (175 Points)
Replied 18 September 2023

Professional tax paid by a company for itself is generally considered a deductible expense under the Income Tax Act in India. You can claim it as an expense while calculating the company's taxable income. However, it's essential to maintain proper records and documents to support the deduction.

The relevant section that allows you to claim professional tax as a business expense is Section 37 of the Income Tax Act, which deals with general deductions. Professional tax falls under the category of "taxes on profits" and is an allowable deduction.

Here's an excerpt from Section 37:

"Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head 'Profits and gains of business or profession.'"

For further more detailed information on this topic visit: Refund of Sеrvicе Tax Paid Whеn Services Wеrе Consumеd Outsidе India

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