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 

[Sadanand Bulbule]

In terms of Article 276(2) of the Constitution, the upper limit of profession tax on any one person is 2500/- per annum.

[Ashwin Karthick]

2500 is like maximum we can claim or like it can carry forward if less professional tax paid in current year and balance in next year 

Eg paid 1500 and so balance 1000 is to be carry forward or per annum 2500 and no carry forward and all which is correct 

[Sadanand Bulbule]

If you pay less than ?2,500, you can claim only the amount actually paid.

AI Summary

Professional tax: upper limit Rs. 2,500 per year; only the amount actually paid is deductible, no carry forward allowed. Professional tax is subject to an upper limit of Rs. 2,500 per annum. For income tax deduction purposes, only the amount actually paid as professional tax in the relevant year may be claimed; any unpaid portion up to the constitutional ceiling cannot be carried forward to subsequent years.