I would like to know whether Transport Allowance or Conveyance allowance is not to be considered for calculating Profession Tax in W.B. Regards, Yogesh Nawale.9922950271
From India, Pune
From India, Pune
Dear Yogesh Nawale.
For the purpose of Professional Tax, "salary" or "wage" includes pay, dearness allowance and all.other remunerations received by any person on regular basis, whether payable in cash or in kind, and also includes perquisites, and profits in lieu of salary, as defined in section 17 of the Incometax Act, 1961 (43 of 1961);
Explanation.-For the purposes of this clause, the expression "on regular basis" shall mean for a period exceeding 180 days in a year.
And as per Income Tax Act, 1961, The CBDT has prescribed guidelines for the purpose of
clauses (i) and (ii) of Section 10(14) vide notification No.SO617(E) dated 7th July, 1995 (F.No.142/9/95-TPL)which has been amended vide notification SO No.403(E) dt 24.4.2000 (F.No.142/34/99-TPL). The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs.800 per month vide notification
S.O.No. 395(E) dated 13.5.98.
So we can say if an employee is getting Rs. 5000/- as Conveyance Allowance then his taxable income for Conveyance Allowance will be Rs. (5000 - 800) monthly= monthly Rs. 4200/-.. In this way Rs. 4200/- will also be taken into a/c for Professional Tax.
I hope I m correct.
Regards.
Jawed Alam.
From India, Dhanbad
76For the purpose of Professional Tax, "salary" or "wage" includes pay, dearness allowance and all.other remunerations received by any person on regular basis, whether payable in cash or in kind, and also includes perquisites, and profits in lieu of salary, as defined in section 17 of the Incometax Act, 1961 (43 of 1961);
Explanation.-For the purposes of this clause, the expression "on regular basis" shall mean for a period exceeding 180 days in a year.
And as per Income Tax Act, 1961, The CBDT has prescribed guidelines for the purpose of
clauses (i) and (ii) of Section 10(14) vide notification No.SO617(E) dated 7th July, 1995 (F.No.142/9/95-TPL)which has been amended vide notification SO No.403(E) dt 24.4.2000 (F.No.142/34/99-TPL). The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs.800 per month vide notification
S.O.No. 395(E) dated 13.5.98.
So we can say if an employee is getting Rs. 5000/- as Conveyance Allowance then his taxable income for Conveyance Allowance will be Rs. (5000 - 800) monthly= monthly Rs. 4200/-.. In this way Rs. 4200/- will also be taken into a/c for Professional Tax.
I hope I m correct.
Regards.
Jawed Alam.
From India, Dhanbad
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