Regarding Professional Tax

Hi All,

Need Clarification: Based on employee’s projected income we deducted professional tax (PT) for all our employees in August 2021. We now have scheduled to pay the deducted tax to the government this month.

Last week, suddenly one employee absconded and we were left with no option expect to terminate and relieve him with immediate effect. Now should we prorate and pay the professional tax based on his income until last week or pay whatever we deducted last month. In case we prorate and pay the professional tax, then should we refund the excess deducted PT to the employee? Kindly advice.

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Hi Jaishree,

Due to the termination, if you are under the situation of deducting excess PT, you can refund the excess amount.

Regards,
Bhuvana Anand

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