I would like to know whether Transport Allowance or Conveyance allowance is not to be considered for calculating Profession Tax in W.B. Regards, Yogesh Nawale.9922950271
From India, Pune
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From India, Pune
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Dear Yogesh Nawale,
For the purpose of Professional Tax, "salary" or "wage" includes pay, dearness allowance, and all other remunerations received by any person on a regular basis, whether payable in cash or in kind. It also includes perquisites and profits in lieu of salary, as defined in section 17 of the Income Tax Act, 1961 (43 of 1961).
Explanation: For the purposes of this clause, the expression "on a regular basis" shall mean for a period exceeding 180 days in a year.
According to the Income Tax Act, 1961, the CBDT has prescribed guidelines for clauses (i) and (ii) of Section 10(14) vide notification No. SO617(E) dated 7th July 1995 (F.No.142/9/95-TPL), which has been amended vide notification SO No.403(E) dated 24.4.2000 (F.No.142/34/99-TPL). The transport allowance granted to an employee to meet his expenditure for commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 800 per month vide notification S.O. No. 395(E) dated 13.5.98.
Therefore, if an employee receives Rs. 5000/- as Conveyance Allowance, then his taxable income for Conveyance Allowance will be Rs. (5000 - 800) monthly = Rs. 4200/-. Consequently, Rs. 4200/- will also be taken into account for Professional Tax.
I hope I am correct.
Regards,
Jawed Alam.
From India, Dhanbad
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78For the purpose of Professional Tax, "salary" or "wage" includes pay, dearness allowance, and all other remunerations received by any person on a regular basis, whether payable in cash or in kind. It also includes perquisites and profits in lieu of salary, as defined in section 17 of the Income Tax Act, 1961 (43 of 1961).
Explanation: For the purposes of this clause, the expression "on a regular basis" shall mean for a period exceeding 180 days in a year.
According to the Income Tax Act, 1961, the CBDT has prescribed guidelines for clauses (i) and (ii) of Section 10(14) vide notification No. SO617(E) dated 7th July 1995 (F.No.142/9/95-TPL), which has been amended vide notification SO No.403(E) dated 24.4.2000 (F.No.142/34/99-TPL). The transport allowance granted to an employee to meet his expenditure for commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 800 per month vide notification S.O. No. 395(E) dated 13.5.98.
Therefore, if an employee receives Rs. 5000/- as Conveyance Allowance, then his taxable income for Conveyance Allowance will be Rs. (5000 - 800) monthly = Rs. 4200/-. Consequently, Rs. 4200/- will also be taken into account for Professional Tax.
I hope I am correct.
Regards,
Jawed Alam.
From India, Dhanbad
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West Bengal Professional Tax.docx
West Bengal Professional Tax Revised Effective from 1 April 2013.pdf