Professional Tax deduction-Joining in middle of month - employee wages

papillon Started The Discussion:

Dear All,

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


prashant_patil -  Member Since: Feb 2007
Really nice question. I also want answer of this question.

Another question is we have to deduct under Maharashtra PT 2500 per year from employee wages. If every month rs. 200 deduction is ok, but Rs. 300 should be deducted in Feb month or March Month??


Prashant Patil

papillon -  Member Since: Jul 2004
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

rajuantony -  Member Since: Jan 2008
Hi All..

Rs. 300/- should be deducted in February only..

Other thing I also want to know in detail on deducting prof. tax for employees joining in the middle of the year.
Can anybody help..?

Raju Antony

HR_Praveen -  Member Since: Nov 2009
Dear All, Why Professional tax is deducted Rs.300 in month of February in Maharashtra state ? & How its Calculated? Regards, HR_Praveen

Ritu sharmavarun -  Member Since: Jan 2013
Hello Member,
I have a query regarding professional tax, Please provide me ceiling of Professional tax.
One thing more this deduct monthly from salary or yearly basis.
I am also calculating salary after TDS. so please if anyone can help me in this also

Thanks in advance

With Regard

poornima.sivaraman -  Member Since: May 2010
Dear All, An employee joined in the middle of the month. Can we prorate his Professional Tax? Please guide me on this. Thank you, Poornima

dixonjose02 -  Member Since: Sep 2009
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.

poornima.sivaraman -  Member Since: May 2010
Thank you for the immediate response Mr. Dixon. Regards, Poornima


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