Profession tax

Afzal Momin (CA FINAL) (177 Points)

01 September 2013

Does Stipend Attracts Profession Tax to be deducted by the Employer under the Profession Tax Act,1975

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4 Replies

CA Pallav Singhania (IT System Auditor) (33567 Points)
Replied 01 September 2013

It will be taxable under the head IOS..

however, there is a case law on it,

Sudhir Kr Sharma v/s ITO in the jaipur bench in may 1983..

Don't agree with the case law.

Afzal Momin (CA FINAL) (177 Points)
Replied 01 September 2013

Sir, I am Asking about deductibility under the Pfofession Tax not under Income Tax....

CA Pallav Singhania (IT System Auditor) (33567 Points)
Replied 01 September 2013

There is no relation of employer and employee between the Employer and Trainee..

Therefore, No PT is to be deducted by Employer...

rajeev (Accountant) (159 Points)
Replied 21 September 2013

Professional Tax is State level tax but it related with Income Tax.

PT is deducted only for Salary not for STIPEND.

In Maharashtra 2500/- p.y. monthly 200/- & in 12 th month 300/- ( who get above Rs.10000/- as salary )

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