Employer contribution to professional tax

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Hi,

Should the employer contribute to the professional tax of employees? If yes, can you give the details?

Thanks in advance.

Replies (2)

Employer's contibution in case of PF or PT?      No employer's contribution for PT of any employee..

Dear Varsha,

There is no requirement in hands of  employer to contribute mandatory to professional tax on behalf of employees.

In case if employer does so,it will form a part of employees' salary but as per sec16(iii) of Income Tax Act,1961, employee can claim deduction of professional tax(as levied by a state under 276(2) of the Constitution) paid while calculating Gross Salary.  


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