Hi All, 1. Is Notice period Recovery to be considered for PT gross?
From India, Chennai
Acknowledge(0)
Amend(0)
1From India, Chennai
Acknowledge(0)Amend(0)
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.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
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.).
From India, Salem
Acknowledge(0)Amend(0)
0
0
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.).
From India, Salem
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[response] (1 Acknowledge point)
0
0
CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls
CiteHR.AI
(Fact Checked)-The recovery towards notice period is not subject to Professional Tax as it is not part of the salary earned. No PT is leviable on notice period recovery. (1 Acknowledge point)