Understanding Professional Tax Implications on Leave Encashment in India - CiteHR

Dear All, Can any one tell me that whether we can consider leave encashment for calculating basis for Professional tax? Thanks & Regards, Sandeep Naik
From India, Mumbai
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Professional Tax on Salary and Wages

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.

From India, Pune
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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?

Regards,
Sandeep Naik

From India, Mumbai
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Leave encashment can not be a part of salary. It can be paid alongwith salary but it has to be under leave encashment heading.
From India, Pune
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