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Maharashtra - Professional Tax Applicability for Payment of Incentives




Query:- Whether Professional Tax is applicable to the Incentives paid to employees in Maharashtra?

Response:-
Yes. Professional Tax is applicable to the Incentives payment to employees in Maharashtra.

As per Section 2(h) of Maharashtra State Tax On Professions Trades Callings And Employments Act,1975
“salary” or “wage” includes pay or wages, dearness allowance and all other remunerations received by any person on regular basis, whether payable in cash or kind, and also includes perquisites and profits in lieu of salary, as defined in section 17 of the Income-Act.  1961 but does not include bonus in any form and on any account or gratuity.
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