In some states in India, State Governments charge Professional Tax from the employees.

While In some companies, employers pay this professional tax from their pocket while in others they deduct it from employees salary.

In Income tax it is allowed as deduction and not exemption as shown below

If it is paid by employer

it is included in Total income as it is  a benefit provided by company and then Deduction is provided


If it is paid by employee,

It is not included In Total Income as no money is received from employer .It is only allowed as deduction


If professional tax is due but not paid, then not allowed as deduction




Question 1                 

Basic salary = Rs. 20000 per month

Professional tax = Rs. 500 per month

Calculate Income from salary if professional tax Paid by employer 

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Question 2

Solve Question 1 assuming employee pays professional tax

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  1. Income Tax
  2. Income from Salaries
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here