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ExamsIBPS POGeneral Awareness

Professional tax is ______.

  1. Fully deductible as a Chapter VI A deductions
  2. Fully deductible from Gross salary
  3. Fully deductible from gross total Income
  4. Not Allowable deduction as per income tax

Correct answer: Fully deductible from Gross salary

Solution

Professional tax paid by an employee is deductible from gross salary while computing income under the head "Salaries." It is not a Chapter VI-A deduction and not deducted from gross total income.

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