Employment (Professional) Tax and Transport Allowance

[K. S. Baliyan]

Hello there!

  I have two queries and would appreciate if somebody can enlighten me on these. Would be happy if you could reply before 31st July.

 

 1. Salaries: How can one accommodate Tax on Employement (sometime called Professional tax) which State Govt charges (Rs 200 per month in Gujarat). There is no column to address this u/s 16.

 2. Transport allowance, to the limit of Rs 800 used to be exempt from tax. Now, after VI CPC, it has increased, to say, 3200. Is it exempt, or only Rs 800/-pm is exempt and rest is taxable.?

Thanks in advance.

sincerely

Kiran Baliyan
--
K S Baliyan
61-SRV, Vastrapur
Ahmedabad-380015
079 26762813 (R)
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[Mohandas K.P]

Dear Sir

The Professional tax amount  and Transport allowance are directly deductible from the Gross Income. However I am not aware of any limit on the transport allowance after introduction of VI CPC.
(Unfortunately  we the faculty in IITS and NITs are yet to get the VI CPC scales implemented.)
Dr Mohandas K P
Professor NIT Calicut

--
Prof(Dr)K P Mohandas, M Tech(IITM),PhD(IITD),
Sen. Mem IEEE, FIE(Ind), Mem CSI,SSI,ISTE
International Liaison Officer,
Coordinator Academic Quality Management & Professor, EE
National Institute of Technology Calicut
NIT CAMPUS, Kozhikode, Kerala 673601
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Email: kpm...@nitc.ac.in /  kp.moh...@gmail.com

[Harish Shetty]

Refer your query on Professional Tax, how it is accomodated on IT returns....

 

Yes. As you have rightly pointed out there should have been a seperate column to show the

Professional tax (tax on employment) as this does not come under any allowences or perquisites. 

 

In the absence of that column, what you can do is, you can deduct the PT amount and show the balance amount in the I column.  Suppose as per your Form 16 salary amount is Rs. 3,00,000/- (excluding all allowencs, perquisites and profit in liue of salary) and if PT amount is Rs. 2,400/-, you deduct Rs. 2400/- from Rs. 3,00,000/- and show Rs. 2,97,600/- in the I column. (under the head Salary, excluding all allowencs, perquisites and profit in liue of salary)

 

Regards/Harish

[Ashok Ghosh]

Dear Sir,

1.Tax on employment is exempt u/s.16(iii) of the IT Act;

2.Except for employees engaged for wotk in hills and other remote places,the deduction in respect of conveyance allowance is restrticted to Rs.800/ u/s.10(14).

Ashok.