Professional Tax On Leave Encashment In India

sandeepnaik.1980

Dear All,
Can any one tell me that whether we can consider leave encashment for calculating basis for Professional tax?
Thanks & Regards,
Sandeep Naik

kprasoon

State Professional Tax is levied on salary and wages earned by the employees. Earn leave encashment doesnt come under salary and wages so there is no question of deducting professional tax from leave encashment.

sandeepnaik.1980

Thanks for the response Mr. Kamal.
Even though we give encashment in Salary is it valid?
Is this scenario valid for all states in India? or there is any provision in any of the state to include it for professional tax?
Regards,
Sandeep Naik

kprasoon

Leave encashment can not be a part of salary. It can be paid alongwith salary but it has to be under leave encashment heading.

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