Quick Answer: Is Professional Tax Exempted?

Is professional tax calculated on gross salary?

Professional tax is calculated every month based on your gross salary for that month.

The professional tax will be levied on this amount of Rs.

40,000.

So, each month based on the increase or decrease of your gross salary, your professional tax slab will also differ and accordingly, your employer will deduct this tax..

What is PF and PT in salary?

In this article, we will look at the features within Zoho Payroll that help you with the four statutory regulations: Employees’ Provident Fund (PF), Professional Tax (PT), Labour Welfare Fund (LWF), and Employee State Insurance (ESI).

What is the benefit of paying professional tax?

Professional Tax in India Total amount of Professional Tax paid during the year is allowed as deduction under the Income Tax Act. The Professional Tax is a source of revenue for the state governments which helps in implementing schemes for the welfare and development of the region.

Is professional tax an indirect tax?

Professional tax is an indirect tax levied by the State government. … On the contrary, any individual who earns an income from a salary, or is engaged in a profession or trade, has to pay this tax.

Is professional tax applicable on wages?

As per the Karnataka Professional Tax Slab Rates, all individuals with a monthly gross income less than Rs. 15,000 are exempted from any charges. However, employees with a monthly gross salary above Rs. 15,000 are levied a professional tax of Rs.

How is PT salary calculated?

How Professional Tax is Calculated. A professional tax is calculated on the basis of your salary and predetermined slabs. You can have to pay anything between ₹ 200 to ₹ 2500 a month.

Is professional tax and TDS same?

In this case Icome Tax amount deduct when payment made and salary by prescribed Percentage according to income tax. TDS amount is like advanced Tax. Professional tax is collected by state government. … You may work in any organisation , but practicing your profession you are paying tax to the state government.

How can I reduce my professional tax?

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. In your income tax return, professional tax is allowed as a deduction from your salary income.

Is professional tax included in CTC?

Professional Tax is a statutory and mandatory deduction which is made from employee’s monthly salary. Professional \tax is deducted from the stipend of the trainee also. Hence you cannot claim it as a part of your CTC but yes, it is mandatory deducted by the company.

Why is professional tax deducted?

Profession Tax is a tax which is levied by the state on the income earned by way of profession, trade calling or employment. … In the case of salary and wage earners, the profession tax is to be deducted by the employer from salary and wages, and the employer is liable to pay it to the state government.

Who is liable for professional tax registration?

Every business establishment (Employer) liable to pay Professional Tax on annual basis and every employee whose income is Rs. 15000 or more is liable to pay professional tax of Rs. 200 per month.

Can professional tax be refunded?

PT can be claimed as deduction u/s 16(iii) to the extent it is paid in a FY irrespective of the period for which it is paid. So in this case, you can claim this deduction for next year.

How do I file a PT return?

A step-by-step guide on how to pay professional taxHighlights.Locate the professional tax website for your state.Fill the professional tax payment form carefully.Verify the information and pay professional tax online.You can also pay this tax at the district sales tax office.

Is professional tax deduction mandatory?

Profession tax is levied and collected by the Commercial Taxes Department of State Governments, in some states by particular Municipal Corporations and majority of the Indian states are collecting this tax. … It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

Is professional tax applicable on daily wages?

The respective state governments in India levy the professional tax on income from profession or employment. … In case of salaried and daily wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government.

What is the rule for professional tax?

Profession Tax Rates in Key States of IndiaStateIncome per MonthTax Rate/Tax Amount (p.m.)KarnatakaUp to Rs. 15,000NilRs. 15,001 onwardsRs. 200Kerala (Half yearly income slabs and half yearly tax payment)Up to Rs.11,999NilRs.12,000 to Rs.17,999Rs.12028 more rows•Apr 25, 2020

What is professional tax split period?

Since professional tax is levied by the state government, it tends to differ for various states. … It is paid by dividing the annual professional tax due into 12 equal instalments, which are to be paid every month. February, as a month, is an exception where the tax is higher than the other months.

Is partnership firm liable for professional tax?

Partners of firm are liable to pay profession tax if the firm or branch is engaged in business in Maharashtra. … Partnership firm or any person paying salary exceeding Rs. 5000/- to employees is under obligation to hold REGISTRATION CERTIFICATE under Profession Tax Act and has to deduct amt.

What is professional tax in Sindh?

This tax is levied under the Sindh Finance Act, 1964. The basis of this tax is to bring various categories of persons engaged in different trade, callings and professions.