profession tax levy on basic or gross salary
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profession tax levy on basic or gross salary

Dilip_Bhojane Started The Discussion:

can you tell me profession tax applicable for basic or gross salary.
we considered profession tax on basic salary is correct or wrong
futher my salary structure head as follows:

Basic
House Rent Allowances
Medical Allowances
Seniority Allowances
City Compenstory Allowances

Are above allowance applicable for profession tax? Pls explain me as per income tax rule

I am waiting your reply.

Tanks,

adv.navin - Member Since: Nov 2008
Dear Dilip,

As Professional tax is always state specific and the definitionof salary or wages may vary from state to state.

But on a general basis following is the definition :

Salary or Wages includes pay, dearness allowance and all other remunera­tions including allowances received by any person on a regular basis whether payable in cash or kind and also includes perquisites and profits in lieu of salary as defined in Section 17 of the Income Tax Act, 1961 (No. 43 of 1961) but does not include bonus in any form and on any account, gratuity and pension]

On the basis , all the components of the salry structure defined by you are [paid to the employees are paid on a regular basis. Hence Professional tax shall be levied on The gross salry and not on Basic only.

I think your query s very much clear.

Revert for any clarification.

Adv Naveen Bhardwaj

9871158855

amit_lycos - Member Since: Jul 2007
Professional tax depends on state & the slab of wages. The wages in PF includes all salary components. regards Amit

satishkumarsc - Member Since: Oct 2007
Professional tax levied on gross salary, not on basic salary.
the new slab as follows. PT is Rs.150 for Rs.10,000 & above gross sal & Rs.200 for 15000 and above
The professional tax depends on states.

Regards,
Satish

cgnanij - Member Since: Nov 2007
Hi, Can anyone please explain that why salary split-up is done Eg: Basic House Rent Allowances Medical Allowances DA What is the benefit of having salary structure. Thanks & Regards cgnanij

A.G.PAVITHRA - Member Since: Nov 2010
can i know at a present profession tax ? profession tax and I T TAX DIFFRENCE? WHAT IS T.D.S ........... WHAT IS METHODS?

sandeep.833@rediffmail.com - Member Since: Nov 2012
Dear All,

can you all help me out this problem Actually I have not idea of regarding TDS deduction on salary . Please Tell me how applicable according slab wise or state wise & also tell me what is method ....

kirtyjain - Member Since: Apr 2010
Hi all,

i have a query. I am working with a CA firm in Gujrat & they pay salary by cheques to the employees. As of now there are no deductions in the salary. there are almost 20 employees. i want to know the details of the following:

1. There is no salary structure like (basic, hra, Da, PF etc). Is it important to have a structure & deduct pf. If not doing, can there be any kind of legal actions or difficulty of any kind?

2. No professional tax is being paid. Is it compulsory to pay and if yes, how should i start?

3. does having a proper salary structure helps employees save on Income tax?

please reply. I am all confused & kind find the direction.

Regards,

Kirty

sandeep.833@rediffmail.com - Member Since: Nov 2012
Dear all, Please let me know , What is criteria of ESIC deduction & components are include in earning salary . Regards Sandeep Kumar

Priya.1994 - Member Since: Feb 2011
Hi Kirti If in your company more then 20 employees are working so u people have to apply for PF & ESIC. Profession tax is compulsory to deduct fromevery employees and u have to pay pt every year.



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