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?
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Hi,
It is very common that multiple PT gets deducted while changing employment. Some organizations follow the method of deducting PT on a monthly basis, while others deduct it every 6 months. However, you enjoy tax exemption for the same 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 his/her gross salary income.
From India, Madras
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1015It is very common that multiple PT gets deducted while changing employment. Some organizations follow the method of deducting PT on a monthly basis, while others deduct it every 6 months. However, you enjoy tax exemption for the same 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 his/her gross salary income.
From 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?
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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)