Professional Tax
Types of Profession Tax Payers:-
Salaried Individuals: The employers are delegated with the duty of paying the profession tax on employees’ behalf after deducting it from their salary. The employees can claim for the income tax deduction on the profession tax under Section 16(iii) of the Income Tax Act, 1961.
Self-Employed: However, the same slab rate is applicable for the self-employed individuals, they need to self-deposit the profession tax. Further, they cannot claim it for the tax deduction in their income tax returns.
Monthly Return Provision
Individuals registered under the profession tax are mandated to file a monthly return (Form V) to the appropriate assessing authority representing the salaries paid and the amount of tax deducted.
The return shall be submitted online as well but before 10th of every month.
