papillon Started The Discussion:
If someone joins in middle of month the what should be his professional tax deduction?
e.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction. His earlier employer would deduct Rs 300 as Professional tax. while his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can someone throw light on how such situations should be handled? There would be many variations to this case.
I have taken Maharashtra state for calculation of Professional Tax
Hi, Professional tax deduction of Rs 300/ should be done in February only. So that the max deduction is Rs 2500/ in Maharashtra state. Thanks
Prof tax can not be pro-rated, as it is not deducted on attendance basis. rather it is dependant purely on the gross salary for a given month. In Maharashtra, Rs.300/- is deducted in Feb, to make it Rs.2500/- for whole year.
In the case given by Pappilon, both the companies will deduct Rs.300/- each in their respective payroll. Hence, the total deduction becomes Rs.2600/- for the entire year. There is no apparent problem in this, as PT paid is admissible as a deduction from tax, hence the entire amount of Rs.2600/- will exempted from tax for him.
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