Hi friends ,
I am facing Professional tax assessment and the authority is telling to make payment of PT on leave encashment shown in the Full and Final dues of left employees. the case in brief is as follows
1. All left employees salary is processed without leave encashment and PT is deducted as per slab and remitted. it is after exit clearance is received the left employees Final settlement is done within includes leave encashment. now the authority is saying to pay PT on leave encashment amount reflected in full and final settlement of employees. question is when we have already deducted his PT @200 which is maximum limit under the PT slabs, in any case leave encashment amount will not be applicable for further PT deduction for such employee.

2. if encashment is done while processing salary , yes, we have to deduct PT on gross salary. But, in our case leave encashment of left employees is done in full and final payment. In such case will LE be applicable for PT deduction .

Can any one throw light on the above case or share a case law or a supporting document..

From India, Pune

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