Aniket Pathak
Sr. Executive Hr
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Insolvency N Gst Professional
Srinath Sai Ram
Hr Manager
Aks17
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Is gratuity applicable on professional tax? Kindly advice on Professional tax deduction and exemptions.
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Professional tax and gratuity have no common link.
There are some categories and people who get benefit of tax exemption:
# Senior citizens are exempt from professional tax.
# Parent of a mentally challenged child is exempt from this tax.
# Persons or parents of children suffering from physical disability are exempt from paying professional tax.
Please check up your state rules on the subject.
No, Gratuity is not taxable under the Professional Tax. Moreover, Professional Tax is a state subject but in no way connected with Gratuity. Do not be confused between the two.
Do you have any notification clarifying that gratuity is not applicable for Professional tax?
There is no notification issued to state that Professional tax is applicable on Gratuity paid [at least not to the best of my knowledge]. In fact Gratuity is exempted now up to Rupees 20 lakhs.
I wonder why are you asking this question- learned members of the fraternity have already answered you query.
Do you have any notification as gratuity is applicable for Professional tax? then share it.
Notice Pay, Gratuity and Compensation are exempted from Karnataka Profession Tax. Please peruse Extract of the Act, as below:
Please Learn to frame question with due application of mind
Example: Whether Gratuity Payment made attracts PT Deduction as per Karnataka PT. Before raising questions, go through the Act several times till you understand the same.
KARNATAKA ACT NO. 35 OF 1976
(First published in the Karnataka Gazette Extraordinary on the Twenty-ninth day of April 1976)
THE KARNATAKA TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1976 (Received the assent of the Governor on the Twenty-eighth day of April 1976) (As Amended by Acts 8 of 1981, 13 of 1982, 26 of 1982, 1 of 1985, 29 of
(i) "profession tax" or "tax" means a tax leviable under the provisions of this Act;
1[(j) 'salary' or 'wage' includes pay or wage, dearness allowance and all other remunerations received or receivable by any person including any amount received by way of arrears of salary or bonus by whatever name called whether payable in cash or kind and also includes perquisites and profits in lieu of salary as defined in section 17 of the Income Tax Act, 1961.
Explanation.- (i) Where 'bonus' by whatever name called is received in part or full, then such bonus shall be spread over for twelve months of the year or to such number of months the bonus relates for purposes of computation of 'Salary' or 'Wage' for such months.
Thanks to all for your valuable input.
Reg: Professional Tax
Dear Experts,
Ex-Servicemen also exempted from PT? Is it right?
Regards,
Chandrashekar.B,
9739133987
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