BONUS - DOES PROFESSIONAL TAX IS APPLIABLE ON THIS?

Hi CiteHR members,

Does payment of bonus attract deductions towards professional tax? Looking out for your help!

Srinaren

Hi Friends,

Nobody has any information on this topic?? Surprising! Can you please enlighten me on this?

Srinaren

Hi Srinivasan,

Yes, of course, PT is to be deducted. PT is calculated based on the Gross Salary, and since the Bonus is part of the Gross Salary, it is necessary to include it in the deduction.

Regards,
Sree

Hi Srinivasan,

Yes, of course, PT is to be deducted. PT is calculated based on the Gross Salary, and since the Bonus is a part of the Gross Salary, it is necessary to include it in the deduction.

Regards,
Sree

Hello,

Bonus is not included in the gross salary, so PT is not applicable on bonus.

Regards,
Mitesh

Bonus is not a part of Gross Salary; it is a yearly emolument, hence it is not applicable for PT.

Bibek Banerjee

Hi,

There seems to be a difference of opinion! Can any legal expert shed some light on this, please?

Srinaren

Dear all,

Bonus is a part of Gross Income; hence, Income tax is deductible (if applicable). However, Professional Tax is a totally different concept and is a deduction on its own. There won't be any Professional Tax deduction on the Bonus.

Prasanna

Dear Srinaren,

Usually, the power to collect Professional Tax vests with Local Self-Government institutions (Panchayat, Municipal Corporation, etc.). For each state, there are separate Acts and Rules to govern these institutions. According to the Kerala Panchayat Raj Act Sec 205F and the rules thereunder, Bonus also has to be taken into account for computing the Professional Tax. I find no other reason to include a clause contrary to this in the Act applicable to your area. Hope this will clarify the doubt.

Nasir Ali