State professional tax is levied on salary and wages earned by the employees. Earned leave encashment doesn't come under salary and wages, so there is no question of deducting professional tax from leave encashment.
Thank you for the response, Mr. Kamal. Even though we provide encashment in the salary, is it valid? Is this scenario applicable to all states in India, or is there any provision in any state to include it for professional tax?
Leave encashment cannot be a part of the salary. It can be paid along with the salary, but it has to be under the leave encashment heading.
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