Professional Tax on Bonus - Professionals - Taxation - TIK Share
0 Likes 248 Views

Professional Tax on Bonus

Antony Raj


Dear Experts,

As per Karnataka PT act, is the bonus applicable for PT deduction or this is excempted from PT.

Kindly clarify.




Rahul Rai


Hi, If we read the definition of salary as per Karnataka PT Act, the definition reads as:

'Salary' or 'wage' includes pay or wage, dearness allowance and all other remunerations received or receivable by any person including any amount received by way of arrears of salary or bonus by whatever name called whether payable in cash or kind and also includes perquisites and profits in lieu of salary as defined in section 17 of the Income Tax Act, 1961.


(i) Where 'bonus' by whatever name called is received in part or full, then such bonus shall be spread over for twelve months of the year or to such number of months the bonus relates for purposes of computation of 'Salary' or 'Wage' for such months.

From this definition its clear that for profession tax (PT), you have to consider bonus and spread it over 12 months.