Professional tax as per section 16(iii) of income tax

[Ashwin Karthick]

Any limits for professional tax under optional tax if so what is it and whether it can be carry forward to next year if any unutilised 

AI Summary

Professional tax cap under Article 276(2) and deduction under section 16(iii): no carry forward of limit A forum user asks about limits and carry forward of professional tax under section 16(iii) of the Income-tax Act. Another participant clarifies that, under Article 276(2) of the Constitution, the maximum professional tax that can be levied on any person is Rs. 2,500 per annum. For income-tax purposes, a deduction is allowed only for the professional tax actually paid during the year. If the tax paid is less than Rs. 2,500, the unutilized portion of this ceiling cannot be carried forward to subsequent years.