Notice Period Recovery: Should It Be Included in PT Gross for Tax Purposes?

Hi all, is the notice period recovery to be considered for PT gross?

Professional tax is payable on the salary earned by an employee. Recovery towards the notice period is a payment made to an employer in lieu of not serving the notice period. Therefore, no professional tax would be leviable on it. I am not aware of any clarificatory circular to the opposite effect.

Dear Vinodh,

Understanding Professional Tax

Professional Tax is the tax levied on the gross income earned by everyone from his/her occupation within the jurisdiction of the concerned Local Body. As Mr. KK!HR pointed out, the recovery of notice period salary is a deduction from the earnings of the concerned employee. Therefore, logically and legally, it cannot attract Professional Tax (P.T.).