Is Professional Tax an allowable exps under the income from business or profession as per IT Act ?
7 Replies
Atul h Kaulwar
(Article)
(91 Points)
Replied 11 July 2010
First of all it is Profession Tax & not PROFESSIONAL Tax
It is allowabel as exp subject to SEC 43B
i.e. on payment basis it is allowed as exp
varun gupta
(Senior Accounts Officer)
(89 Points)
Replied 11 July 2010
absolutely it is allowable expense
manoj
(student)
(5205 Points)
Replied 11 July 2010
its allowable exp
for detail info on professional tax go to this forum
/forum/professional-tax-90801.asp
(Guest)
| Originally posted by : manoj | ||
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its allowable exp for detail info on professional tax go to this forum /forum/professional-tax-90801.asp |
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Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 12 July 2010
professional tax is a tax on employment to be paid by the employee.. which is allowed as an deduction u/s 16(iii)..on actual payment basis from Gross Salary...If paid by the employee , it is allowed as deduction from gross salary to arrive at income from salary...If paid by the employer on behalf of his employee..it is first added to salary as an perquisite ..and then allowed as an deduction ...for employer , it is a perquisite provided to the employee n allowed as an expenditure on payment basis.....
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 12 July 2010
yes it is a allowable exp. its is a part of salary if u deposite on behalf of the employee.
if u have business or profession than u debited it in his profit & loss a/c
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