Dear Sir, I have a query regarding the Professional Tax (W.B) deduction for a resigned employee. The issue is that one of our employees resigned from our organization in June 2024, and we have to clear her full and final settlement with her due bonus amount. My query is: Will the bonus amount be added to her gross salary for the Professional Tax deduction, and will the slab of Professional Tax amount be increased for that? Kindly help.
Regards
Tarak Shaw
From India, Kolkata
4Regards
Tarak Shaw
From India, Kolkata
Profession tax is a tax on profession, and therefore, the income from all sources including bonus will qualify for that. Afterall, bonus is an receipt in the hands of an employee, and let the employee pay tax on that amount also. Therefore, while preparing full and final statement, if you include bonus as a component of amounts payable, you should consider it as part of revenue for the purpose of computation of professional tax and income tax, if applicable.
I believe the same question was raised in the forum last week, and a number of comments also appeared for that. If this is a post from the same thread starter, please do not put the same question but use the same thread to ask further clarifications, if any.
From India, Kannur
I believe the same question was raised in the forum last week, and a number of comments also appeared for that. If this is a post from the same thread starter, please do not put the same question but use the same thread to ask further clarifications, if any.
From India, Kannur
Dear Madhu Sir,
Please be noted that we pay this bonus as festival bonus once in a year not monthly basis and we pay this bonus at the time of West Bengal Durga Puja. In this scenario, what is the process, Kindly suggest.
Regards
From India, Kolkata
Please be noted that we pay this bonus as festival bonus once in a year not monthly basis and we pay this bonus at the time of West Bengal Durga Puja. In this scenario, what is the process, Kindly suggest.
Regards
From India, Kolkata
Whether the Bonus IS paid in monthly basis or yearly basis or it is festival bonus or statutory bonus as per payment of bonus act, professional tax will be applicable as explained by Mr. Madhu TK.
S K Bandyopadhyay ( WB, Howrah)
CEO USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO USD HR Solutions
+91 98310 81531
skb@usdhrs.in
From India, New Delhi
If you pay bonus during durga pooja, the amount of bonus will become part of the income under that half year, say, if the Durga Pooja falls in October, then it will be an income to be considered for computation of profession tax for the second half of 2024-25. In the case of an employee who has left the service, in the first half, if you are paying the bonus now at the time of F&F, you can include the bonus amount also in the first half income and accordingly deduct the tax from the F&F. Suppose, if the bonus is not paid now, but will be paid in October (in the month of Durga pooja) then when you pay bonus, you can deduct the professional tax from the bonus.
From India, Kannur
From India, Kannur
Dear Tarak,
The Professional Tax (W.B) is not applicable to "Annual Bonus" In West Bengal. So you need to calculate PT on exact salary components.
As to your query, read the following line :
Salary and Wages
Any person earning a salary or wages is liable to pay professional tax. Salary and wages under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 are described below.
Salary and wages include the following.
1. Pay, Dearness Allowance, and any other amount paid as allowance.
Remunerations are received in cash or any other kind regularly.
2. Honorarium, perquisites, and profit instead of salary
3. Leave encashment amount
4. Leave concessional pay and subsistence allowance.
Salary and wage do not include the following.
# Medical reimbursement
## Reimbursement of conveyance charges,
### Traveling allowance
#### Salary paid to apprentice under Apprentices Act, stipend paid to the trainee
##### Statutory Bonus,
###### Gratuity,
####### Ex-gratia payment.
Pension granted to an employee is not considered a salary.
Therefore, pensioners are not liable to pay Professional Tax on their retirement.
From India, Mumbai
The Professional Tax (W.B) is not applicable to "Annual Bonus" In West Bengal. So you need to calculate PT on exact salary components.
As to your query, read the following line :
Salary and Wages
Any person earning a salary or wages is liable to pay professional tax. Salary and wages under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 are described below.
Salary and wages include the following.
1. Pay, Dearness Allowance, and any other amount paid as allowance.
Remunerations are received in cash or any other kind regularly.
2. Honorarium, perquisites, and profit instead of salary
3. Leave encashment amount
4. Leave concessional pay and subsistence allowance.
Salary and wage do not include the following.
# Medical reimbursement
## Reimbursement of conveyance charges,
### Traveling allowance
#### Salary paid to apprentice under Apprentices Act, stipend paid to the trainee
##### Statutory Bonus,
###### Gratuity,
####### Ex-gratia payment.
Pension granted to an employee is not considered a salary.
Therefore, pensioners are not liable to pay Professional Tax on their retirement.
From India, Mumbai
Thank you for the above explanation. But what I understand about salary is the salary as per Income Tax Act. Obviously, that will include bonus also. Section 2(j) of the Act (West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 ) also clarifies it. Since bonus is a receipt of income in the hands of employees, there is no scope for its exclusion, I believe.
From India, Kannur
From India, Kannur
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