Professional Tax Calculation - Basic Pay
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Professional Tax Calculation - Basic Pay

kartrix Started The Discussion:

Hi,

My question is pertaining to the Professional Tax Deduction...

I would like to know the following :-
  • How Professional Tax deduction amount is calculated
  • Is this calculation based on the basic pay or the total ncome before tax
Looking forward for your opinion/advice

Regards

KRJ - Member Since: Mar 2010
Professional Tax to be deducted on Basic + HRA but the limit changed from F.Y. 2009-10. It is as follows:

1. above 5000 - 10000 (basic + Hra) = Rs. 175/- standared
2. above 10000 onwards Rs. 200/- in February Rs. 300/- (Total for F.Y. Rs. 2500/-) Standared.

I hope it will solve your problem.

Regards,

Kavita.

karadkar.ss - Member Since: Apr 2010
Dear Kavita Madam, Can U make me understand in which state the above calculation is applicable. S S KARADKAR

sundararamanh - Member Since: Nov 2009
Dear Kavita Madam,
Professional Tax is deducted @ 10% of the professional/ consulting fees. From where do you get this Rs.175 and Rs. 300 figures? I am very eager to know about it.
Regards,
H.SUNDARA RAMAN

KRJ - Member Since: Mar 2010
Dear Mr. Sundara Raman

This Calculation is given by our P.F./ESIC/P.T. Consultant. I deduct our office Employees P.T. as per his instructions. It is for Maharashtra State only. If it is wrong please give the details. I would like to talk to our consultant regarding this matter. As per your information Professional Tax is deducted @ 10% of the professional/ consulting fees than I should have talked to him. There must be something missing.

thanks & Regards
KRJ

Ilyas Hungund - Member Since: Nov 2007
Quote:
Originally Posted by KRJ View Post
Dear Mr. Sundara Raman

This Calculation is given by our P.F./ESIC/P.T. Consultant. I deduct our office Employees P.T. as per his instructions. It is for Maharashtra State only. If it is wrong please give the details. I would like to talk to our consultant regarding this matter. As per your information Professional Tax is deducted @ 10% of the professional/ consulting fees than I should have talked to him. There must be something missing.

thanks & Regards
KRJ
Hi,

Here you are mixing two separate subject, Professinal Tax and Tax deduction at source.
(1) Professional tax is pertaining to our direct employees @ 5001 to 9999 Rs.150.00 p.m. and above 10000 Rs.200.00 p.m. and in the month of February Rs.300.00. (The above rates are base on Maharashtra)
(2) TDS is different, those are working in your company as vendors, contractors and consultants you need to duduct TDS @ 10% on bill amount.

Ilyas Hungund.
9820472697.

Ilyas Hungund - Member Since: Nov 2007
Hi,

Here you are mixing two separate subject, Professinal Tax and Tax deduction at source.
(1) Professional tax is pertaining to our direct employees @ 5001 to 9999 Rs.150.00 p.m. and above 10000 Rs.200.00 p.m. and in the month of February Rs.300.00. (The above rates are base on Maharashtra)
(2) TDS is different, those are working in your company as vendors, contractors and consultants you need to duduct TDS @ 10% on bill amount.

Ilyas Hungund.
9820472697.

hr_rohitkumar - Member Since: Oct 2007
Hi ,
PT is calculated @ of Rs 2,500 anually from the salary of an employee.

Regards
Rohit Kumar


Hi,

My question is pertaining to the Professional Tax Deduction...


I would like to know the following :-
  • How Professional Tax deduction amount is calculated
  • Is this calculation based on the basic pay or the total ncome before tax
Looking forward for your opinion/advice

Regards[/QUOTE]

arunk1512 - Member Since: Nov 2009
Yes. Ilyas. you are right.

Professional Tax is deducted from direct employees working in an organisation

& TDS[Tax deducted at source] @10% plus Edu cess as applicable are deducted from Professionals who work as Consultants in the organisation

Secondly, I would like to correct the Professional tax amount as Rs.175/- instead of Rs.150/- [For Maharashtra state only]

Rest is OK

Best Regards
Arun


Quote:
Originally Posted by Ilyas Hungund View Post
Hi,

Here you are mixing two separate subject, Professinal Tax and Tax deduction at source.
(1) Professional tax is pertaining to our direct employees @ 5001 to 9999 Rs.150.00 p.m. and above 10000 Rs.200.00 p.m. and in the month of February Rs.300.00. (The above rates are base on Maharashtra)
(2) TDS is different, those are working in your company as vendors, contractors and consultants you need to duduct TDS @ 10% on bill amount.

Ilyas Hungund.
9820472697.

sundararamanh - Member Since: Nov 2009
Dear HUNGUND, Thank you for your explanation. Now Iam clear . 10 % is for income tax TDS Regards, H.SUNDARA RAMAN



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