Our Recommendations :-
Follow CA Final FB Page

How much professional tax to be exempted u/s 16(iii)?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 niru asked over 2 years ago

A person worked 9 months in a company and 3 months in another company. As per form 16 total professional tax charged is Rs 4400. (1600 and 2800). Can anyone tell how much to be taken u/s 16(iii) while filing income tax returns?

    0       0 Answer Now Comment Report
5 Answers
Open uri20170510 32134 59004f?1494421790 Anshul Dhawan answered over 2 years ago

As per section 16(¡¡¡) If tax paid by the employer on behalf of employee::If such tax is paid by the employer on behalf of the employee then same amount will be treated as perquisites and then deduction will also be available to the employee.

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Section 16(iii) : As per section 16(iii) of Income tax act ,Professional tax on employment or tax on employment levied by state under article 276(2) of the Constitution is allowed as a deduction from the Salary income. . . .How much professional tax to be exempted u/s 16(iii)? . Tax should be Paid By the Employee: Profession tax should have been paid by the Employee then only he is eligible to get deduction of the same.If he has not paid the same then no deduction is allowed. . How much professional tax to be exempted u/s 16(iii)? . Deduction,if Tax paid by the employer on behalf of employee::If such tax is paid by the employer on behalf of the employee then same amount will be treated as perquisites and then deduction will also be available to the employee.

    0       0 Comment Report
Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

As per Section 16 The income chargeable under the head "Salaries" shall be com- puted after making the following deductions, namely :— (i) [***] (ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less; (iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.

    0       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Chirag answered over 2 years ago

**Professional Tax** As per Section 16(iii) deduction is allowed for any tax on employment paid by the assesee to the state under Article 80C 276 of the constitution.

    0       0 Comment Report
Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

Dear Friend, as far as your query is concerned that How much professional tax to be exempted u/s 16(iii)? Let me informed that . How much professional tax to be exempted u/s 16(iii)? . Section 16(iii) : As per section 16(iii) of Income tax act ,Professional tax on employment or tax on employment levied by state under article 276(2) of the Constitution is allowed as a deduction from the Salary income. . . .How much professional tax to be exempted u/s 16(iii)? . Tax should be Paid By the Employee: Profession tax should have been paid by the Employee then only he is eligible to get deduction of the same.If he has not paid the same then no deduction is allowed. . How much professional tax to be exempted u/s 16(iii)? . Deduction,if Tax paid by the employer on behalf of employee::If such tax is paid by the employer on behalf of the employee then same amount will be treated as perquisites and then deduction will also be available to the employee. . How much professional tax to be exempted u/s 16(iii)? . Maximum amount under article 276(2): As per article 276(2) of the constitution ,State Govt , municipality or other authority which is authorised under article 276(2) can impose professional tax on employment from a person maximum up to 2500/year. Hope answer was helpful to you Regards, Arjun Pratap Singh

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.