Professional Tax deducted by both companies

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One employee joined us by mid of July, 2013. His previous company deducted Professional Tax of Rs.1250/- (for Apr-Jul). We also deducted Rs.1250 each for both half yearly deduction. His previous company form 16 shows this Rs.1250 under exemption. Form 16 given by us also shows Rs.2500 under exemption. So while filing the return where should this excess amt (Rs.3750-2500)shown under exemption to be adjusted. Please clarify.

Thank you.

1 Answers

There is no income tax on profession tax, as employee never gets this amount. Rs 3750 was deducted from employee's income by two employers for professional tax, so this amount should not be added to his taxable and should be exempted.

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