Understanding Professional Tax: When Does the New Exemption Rule Start?

Professional Tax and Its Applicability

According to Article 276 of the Indian Constitution, Profession Tax or Tax on employment is levied on the employee and is to be deducted from the salary every month. The amount paid as Professional Tax is exempted, as per G.O.Ms.No.82, dated 04.02.2013. Please help somebody. From which date will the new rule be applicable?

Regards,
Venkat

It is always applicable for the financial year after the order is passed or on the date as clearly specified. Since the order does not specify any date, it is to be deemed effective from April 1, 2013.

Seniors, please advise if I am wrong.

Notification Applicability in India or Specific to AP

Hi Santosh Javali, I am inquiring whether this notification applies to all of India or is specifically for Andhra Pradesh. Could you please clarify? Looking forward to your response.

Best regards

There is a new amendment on professional tax (p.tax) applicable from February 2013. This means that professional tax will be deducted from the February salary in the month of March 2013.

Understanding Professional Tax Amendments in India

The taxes on professions, trades, callings, and employments are a subject matter of the State. Article 276(3) of the Constitution of India empowers the Legislature of a State to make laws in this regard. Accordingly, many State Governments have enacted their respective laws.

The querist has posted the abstract notification of an amendment in Andhra Pradesh law, in which the effective date is not mentioned. This abstract notification is an order to publish the notification in an extraordinary issue of the Andhra Pradesh Gazette dated 06-02-2013.

The general rule is that when there is no effective date mentioned in the Gazette, the date of publication of the Gazette is considered the effective date. According to this, if there is no mention of the effective date in the Gazette, then the effective date will be 06.02.2013.

In this case, my view is that whatever taxes are payable after this date will be as per the new rates. For example, the tax for January 2013, payable on 28th February 2013, should be at the new rate. One may have a different opinion from mine.

In Maharashtra, there have been no changes in the rates so far. In Gujarat, too, to my knowledge, there have been no changes in the rates so far.

Regards

My management is still not convinced about the Professional Tax (PT) deduction. They say that in any government organization, the deduction is not being done. Please suggest if the deduction should be done or not.