How is professional tax calculated?

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. 2400.

Who is eligible for professional tax?

A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection.

How is PT deducted from salary?

When is professional tax deducted? If you are a salaried individual then as mentioned under Article 276(2) of the Indian Constitution, your professional tax will be deducted by your employer based on your salary slab from your gross income on a monthly basis and it will then be remitted to the state.

What is the turnover limit for professional tax?

All working and self-employed professionals whose monthly income is above Rs. 1000 need to pay professional tax in Karnataka. Professional earning less than Rs. 10000 need not pay any professional tax to the Karnataka Government.

Who is exempt professional tax?

The following individuals are exempted to pay Professional Tax: Parents of children with permanent disability or mental disability. Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.

Can I claim professional 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.

Who is exempt from professional tax?

In which state professional tax is not applicable?

While states like Karnataka and Maharashtra have profession tax, there is no such tax applicable in Delhi and Haryana.

What is the rule for professional tax?

A maximum of Rs. 2,500 can be levied as professional tax on any person per financial year. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.

What is total salary?

The amount received post subtracting gratuity and the employee provident fund (EPF) from Cost to Company (CTC) is called as Gross Salary. In other words, Gross Salary is the amount paid before deduction of taxes or deductions and is inclusive of bonuses, over-time pay, holiday pay etc.

What is the rule of professional tax?

Can I avoid 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.

Where does professional tax come from in Maharashtra?

The professional tax, in Maharashtra, is regulated by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. The revenue collected is used towards the Employment Guarantee Scheme and the Employment Guarantee Fund. Who Pays Professional Tax in Maharashtra?

Which is the PT slab of Maharashtra state?

Dear All Attached is the amendment in PT slab w.e.f. 1.7.09 in Maharashtra state. Regards Rajendra Bhavsar 09850869517

What is the State Tax Act of Maharashtra?

The state of Maharashtra has passed an Act known as the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 with the purpose to collect revenue to be used in Employment Generation Guarantee Scheme.

What is the penalty for not paying professional tax in Maharashtra?

Rs. 300 for the month of February. The Maharashtra Government charges penalty under the following circumstances: Providing inaccurate information while enrolling for professional tax. Failure to pay professional tax within due date. Professional Tax is a kind of tax charged by various State Governments.