How is professional tax calculated in salary?

For example, if you are a working professional in Gujarat earning Rs. 20,000 a month, your monthly professional tax will amount to Rs. 200, and your annual professional tax will be Rs. 2,400.

What is employee professional tax?

It is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.

Is professional tax calculated on gross salary or net salary?

Professional tax is calculated every month based on your gross salary for that month. Say your CTC is Rs. 50,000 per month, and after deduction of your EPF, gratuity, and leave deduction or payment towards any loan you may have taken from the company in the past, your gross salary comes to Rs. 40,000.

What is PT in salary deduction?

When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”. PT or Professional Tax, as it is called, is a tax paid to the state government.

What is professional tax and income tax?

Professional tax one source of revenue for the government and is used towards bettering the services for professionals in that state. Thus, it is essential for every employer to deduct professional tax on salary, although there are a few exemptions related to this. Professional tax in India varies from state to state.

How is PT interest calculated?

For late payment of PT, interest @ 1\% p.m. is levied and the state may also impose a penalty of 50\% of the total amount due….Profession Tax in West Bengal.

Monthly Salary Wage	PT Payable
a. Less than Rs. 8,500	Nil
b. Rs. 8,501 to Rs. 10,000	Rs. 90 p.m.
c. Rs. 10,001 to Rs. 15,000	Rs. 110 p.m.

Why is professional tax deducted?

Is professional tax and income tax same?

Professional tax or tax on employment is a tax levied by a state, just like income tax which is levied by the central government. The maximum amount of professional tax that can be levied by a state is Rs 2,500. It is usually deducted by the employer and deposited with the state government.

Is professional tax part of income tax?

Professional tax or tax on employment is a tax levied by a state, just like income tax which is levied by the central government. It is usually deducted by the employer and deposited with the state government. In your income tax return, professional tax is allowed as a deduction from your salary income.

What is the interest rate for professional tax?

1.25\% per month
Professional Tax in Karnataka For late payment of Professional Tax in Karnataka, Interest @ 1.25\% per month would be levied and a maximum penalty of 50\% of the Total Amount due may also be levied by the Karnataka authority.

Is professional tax mandatory for all employees?

Is it mandatory to pay professional tax? Yes, if you are a salaried individual, it is mandatory to pay professional tax.

How is professional tax penalty calculated?

In case of non/late payment of profession tax, penalty will be 10\% of the amount of tax. In case of late filing of returns, a penalty of Rs. 1000 per return will be imposed if you filed after due date in 1 month.

How is professional tax calculated in India?

Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

What is professional tax and how do I pay it?

Professional tax is a tax that is levied by the state government and applies to income you earn through employment. You can often find the deduction for the same on your salary slip each month.

How is professional tax calculated on gross or net?

Professional Tax is calculated on gross per month and its fixed for a level.. Like for employees who are getting upto 6000/-, deduction would be 20/- rupees.. but its vary from state to state..

How do I know how much professional tax I can deduct?

This must be done keeping your salary amount in mind. Accordingly, you will be able to see how much professional tax is deductible per month or annually. You can also choose to use a professional tax calculator by clicking here.