Professional tax payment to different states in a single year

Ask the Community Income Tax
1

Hi,

If employee switches jobs across states midyear, what is the process of paying professional tax to different states separately? e.g. Chennai, TNadu and Karnataka, TNadu and Pune, Maharashtra

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2

Hi Manjunath,

In this scenario, the employer has to calculate the PT as per the prescribed slab applicable in that state and deduct it accordingly.

Regards,
Bhuvana Anand

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3

Paying for any of the states will do and the documents have to be kept.
Thank you.

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4

If we look at the PT ready-reckoner, most states follow monthly PT and deduction happens month on month. However if the deduction is on a half yearly basis, transition may have an impact. The employee once move to another state, then it may not be easy to refund that proportionately in one state. Otherwise, paying PT for the states worked on a monthly basis a straightforward exercise it seems.

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5

Concur with Sree. Refund of PT in the scenarios of frequent job switches is a bit tricky aspect.

One can claim a PT refund under IT Act to the extent it is paid in a financial year irrespective of the period for which it is paid.

Regards,
Bhuvana Anand

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