The question (6 marks)
Shalini is employed in Pune on a monthly salary and also practises part-time as a consultant. Her employer deducts profession tax from her salary. She contends that the levy is in substance a tax on income which the State cannot impose, that in any event she cannot be taxed twice over on the same person, and that the amount deducted should be allowed to her as a deduction from salary. Advise her. (6 marks)
MU Module IV, Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975; pack ch. 04, problem question.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 4 · GST and Maharashtra Profession Tax of Law of Taxation.
Authorities you will need
- Entry 60, List II and Article 276, Constitution of India
- Sections 2(e), 3, 4, 5, 6, 7 and 13, Maharashtra State Tax on Professions, Trades, Callings and Employments Act
- Schedule I, Maharashtra State Tax on Professions, Trades, Callings and Employments Act
- Section 19(1), Table Sl. No. 1, Income-tax Act
- Section 202(2)(a)(iv), Income-tax Act
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.