Profession Tax - Maharashtra

[KSA Associates]

As per Section 4 of PT Act 1975, it is mentioned that employer is liable to deduct the Profession tax at the time when Salary or wages is paid. Now if the employer gives Full and Final settlement for 4 months in a single month, whether PT should be deducted for all 4 months or only one month.

AI Summary

Employers Must Deduct Profession Tax on Full and Final Settlements Per Section 4 of Maharashtra PT Act 1975 Under the Maharashtra Profession Tax (PT) Act, 1975, employers must deduct PT when salary or wages are paid, as stated in Section 4. If an employer provides a Full and Final Settlement covering multiple months in one payment, PT should be deducted for the entire amount in the month the payment is made. The deduction is based on the cumulative salary for those months, calculated according to the applicable PT slabs for the settlement month. There is no need to deduct PT separately for each month unless payments were made individually in separate months.