Hi, Can my ex-company deduct professional tax on my gratuity? Also, I have been an NRI for the last 2 years - can they still deduct professional tax on my ESOPs. Please advise.
From Singapore, Singapore
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From Singapore, Singapore
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725
No professional tax can be deducted on terminal benefits because they would not come under remuneration. Professional Tax is a tax levied on remuneration earned by undertaking a profession within the geographical jurisdiction of the Tax Authority. When the individual is an NRI, it cannot be levied on income earned abroad.
From India, Salem
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From India, Salem
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ESOP
Taxability
Treatment in the hands of Employee
At the time of allotment of shares – It will be treated as a perquisite and will be taxable under the head Income from Salaries. Employees shall be liable to pay tax only at the time of exercise of options which shall be calculated and paid on the amount of difference between the Fair Market Value on the date of exercise and the Exercise Price, and such amount shall be taxed as a perquisite under Section 17 of the Income Tax Act 1961 in the hands of the employee.
Your query will have to be more specific for better answer
Did you sell your shares?
There is really no question to Professional Tax on Gratuity or on ESOP.
From India, Pune
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Taxability
Treatment in the hands of Employee
At the time of allotment of shares – It will be treated as a perquisite and will be taxable under the head Income from Salaries. Employees shall be liable to pay tax only at the time of exercise of options which shall be calculated and paid on the amount of difference between the Fair Market Value on the date of exercise and the Exercise Price, and such amount shall be taxed as a perquisite under Section 17 of the Income Tax Act 1961 in the hands of the employee.
Your query will have to be more specific for better answer
Did you sell your shares?
There is really no question to Professional Tax on Gratuity or on ESOP.
From India, Pune
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Company Profile.ppt
Company Profile Letter - Global Risk Management Services.pdf