During the Financial Year and in mid of a month, if I switch job then should both employers deduct my professional tax at INR 200 for that month?
From India
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From India
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Hi, it is very common for multiple PT deductions to occur when changing employment. Some organizations deduct PT on a monthly basis, while others do so every six months. However, you can enjoy tax exemption if you fall under the purview of income tax. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from their gross salary income.
From India, Madras
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1016From India, Madras
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ok so in this case, my PT would be deducted more than 2500 and I can take a tax exemption of 2500, right?
From India
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From India
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
PENALTIES UNDER INCOME TAX ACT.docx
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(Fact Checked)-The user's reply is correct. The deduction of professional tax by both employers during the financial year switch is common practice, with tax exemption available under certain conditions as per Section 16 (iii) of the Income Tax Act 1961. (1 Acknowledge point)