Moving States: Do I Need to Pay Professional Tax Again in Karnataka?

Hello All, I believe that we are liable to pay ‘Professional tax’ (of INR 200 per month in Karnataka state) if I am employed. In my scenario, I have already paid 6 months of ‘Professional tax’ in advance (for the period Oct 2014 to March 2015 to the Tamil Nadu government) to my previous employer. (I have proof to support my claim) Now my state of employment has changed from Tamil Nadu to Karnataka.

Section 198-B: Levy of Profession Tax

According to section point (4) of 198-B. Levy of profession tax of the below link:

Rural Development & Panchayat Raj - Panchayat Raj: TN Panchayats Act

(4) Where a company or person proves that it or he has paid the sum due on account of the tax levied under this Chapter or any tax of the nature of a profession tax imposed under the Cantonments Act, 1924 (Central Act II of 1924) for the same half-year to any Local Authority or Cantonment Authority in the State of Tamil Nadu, such company or person shall not be liable, by reason merely of change of place of business, exercise of profession, trade, calling or employment, or residence, to pay the tax to any other local authority or Cantonment Authority.

I am not liable to pay tax to the Karnataka government again for the above-mentioned duration. Please give your point of view.

Thanx,

Abhishek

In Tamil Nadu, the rules state that the Professional Tax (PT) need not be paid in advance. For the year 2014-15, from April 2014 to September 2014, you are required to pay it before the 15th of September. From October 2014 to March 2015, you must pay the PT before February 2015. I don't understand why your Tamil Nadu employer has deducted it in advance.

Therefore, in my opinion, your Tamil Nadu employer does not have the right to deduct the PT in advance since you will not be working for them from October 2014 to March 2015. You are responsible for paying the PT for the Karnataka state since you are employed there during the mentioned period.

Thank you for your quick response. 

Background Information

I left my previous employer on August 28, 2014 (last working day). From my August salary, 6 months of Professional Tax (PT) were deducted (For Tamil Nadu: INR 1175). According to your reply, that deduction was for the period from October 2014 to March 2015.

Now that I have left the company, am I eligible to apply for a refund of the Professional Tax? Is there a process for refunding wrongly deducted Professional Tax? If so, could you please explain the steps involved?

Thank you,

Abhishek

I don't know for which half-yearly period that deduction was made. My only point is that the Professional Tax (PT) cannot be paid in advance for half a year. If the deduction is for the period from April 2014 to September 2014, then the deduction is perfectly correct. I had replied based on the details you provided.

Refund Process for Professional Tax

Regarding the refund, yes, you have the right to ask for a refund of the PT you paid in advance. Write a letter to the company requesting a refund. If they are still not willing to provide a refund, you can file a complaint with the Labour Officer or the Secretary of the corporation or municipality where the company is located.

Regards,