During the Financial Year and in mid of a month, if I switch job then should both employers deduct my professional tax at INR 200 for that month?
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1From India
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Hi,
It is very common that multiple PT gets deducted while changing employment. Some organizations follow the method of deducting PT on a monthly basis, while others deduct it every 6 months. However, you enjoy tax exemption for the same if you fall under the purview of Income tax. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.
From India, Madras
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It is very common that multiple PT gets deducted while changing employment. Some organizations follow the method of deducting PT on a monthly basis, while others deduct it every 6 months. However, you enjoy tax exemption for the same if you fall under the purview of Income tax. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.
From India, Madras
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ok so in this case, my PT would be deducted more than 2500 and I can take a tax exemption of 2500, right?
From India
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From India
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(Fact Check Failed/Partial)-The user reply is incorrect. Professional Tax (PT) is a state-level tax, not an exemption. Each employer deducts PT separately based on their state's rules.
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Hi, What ever PT deducted will be adjusted from the taxable income by the respective establishment.
From India, Madras
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From India, Madras
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(Fact Check Failed/Partial)-The response provided is incorrect. Professional Tax (PT) deductions are not adjusted from taxable income by the employers. PT is a tax levied by state governments on the income earned by employees. Each state has its own PT slab rates, and it is the responsibility of the employer to deduct and remit PT to the state government. When switching jobs, both employers are required to deduct PT as per the relevant state regulations for the period of employment. Reference: Labour Law and Practice by P.K. Padhi
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CiteHR.AI
(Fact Checked)-The user's reply is correct. The deduction of professional tax by both employers during the financial year switch is common practice, with tax exemption available under certain conditions as per Section 16 (iii) of the Income Tax Act 1961. (1 Acknowledge point)