Dear All, can anyone tell me , Why Rs. 300/- professional tax is deduct from february months salary?
From India, Mumbai
There’s a professional tax applicable for employees and deducted by companies so that it was deducted from your salary.
From India, Lucknow
Dear Vaibhav,
Your salary most probably comes in a slab where you have to pay Rs 2500/- per financial year as Professional Tax.
According to Govt. rules:
1. The deduction has to be Rs 200 per month for 11 months i.e. 200 X 11 = 2200
2. Deduction of Rs 300 for 1 month i.e. 300 X 1 = 300
Total = 2500.
Rs 300 is deducted in February because this is the rule set by the Govt.
Hope this helps.
Regards,
Ritesh

From India, Pune
Dear Vaibhav,
Ritesh is absolutely correct. This rule has been set up by Govt. Those employees who are come under P.T. slab 200 Rs (monthly salary above 10,000 Rs only) those employees total annual P.T. should be 2500. So in Feb, the PT is 300 Rs.
Regrads,
Mimu143

From India, Mumbai
Mr. Jssawant, "Rs 300 is deducted in February because this is the rule set by the Govt." - Why Govt. has decided on Feb... ask them :)
From India, Pune
Professional Tax (PT) varies between each states (of India) and, in a state, between the local governance systems (like Municipal Corporation, Municipal Council, Panchayat etc). Also, the recoveries to be paid to the local corporation can be monthly, half-yearly or Annual.
You should first check out the norms in your state - the Tax payable and the frequency. Normally, the organisation will recover monthly / half-yearly / annual in one go in the preceding month's salary. Sometimes, even when annual, the organisation may spread the recovery of the employee's PT in instalment so that the burden of huge cut in the take-home pay is reduced (especially in the lower category).
Therefore, check up the norms followed by your organisation and the state where you are working.
Rajusiachen

From India, Coimbatore
Dear Vaibhav, It means your earning is genuine and you are one of the honest citizen and tax contributer. It’s good boss.
From India
DEAR VAIBHAV IF YOUR COMPANY BELONGS TO DELHI THEN PT SHOULD NOT APPLICABLE IN YOUR SALARY. AND AS YOU HAVE SAID THAT PT HAS BEEN DEDUCTED IN FEB MONTH YOU SHOULD ASK TO YOUR HR ABOUT IT.
From India, Delhi
Dear Vaibhav & Jssawant,

Good Question you have asked, Why 300 INR Deducted in Month of Feb?

As per PT (Professional Tax) Act your salary comes under a slab where you have to pay 2500/- INR each financial year.

[ (11* 200= 2200)+(1*300= 300)=2500]

Now the question comes why Govt has decided to deduct 300/- in Feb month, so the reason is “less number of days are in Feb month”, in comparison of other months.

Once we calculate PT month wise, it goes around 300/- INR for Feb and 200/- INR rest of the months.

Hope this will help you to understand.

Professional Tax deduction in India

No Professional Tax

Jharkhand

Arunachal Pradesh

Delhi

Uttaranchal

Utter Pradesh

Professional Tax by State Govt

Jammu & Kashmir

Andhra Pradesh

Madhya Pradesh

Maharashtra

Professional Tax by Municipal Govt

Goa

Know the Professional Tax Slabs in Various States.

Andhra Pradesh

Salary Slabs per month Payable Tax per month

Upto 5,000/- Nil

5,000/- to 6,000/- 60/-

6,000/- to 10,000/- 80/-

10,000/- to 15,000/- 100/-

15,000/- to 20,000/- 150/-

20,000/- and above 200/-

Assam

Upto 3,500/- Nil

3,501/- to 5,000/- 30/-

5,001/- to 7,000/- 75/-

7,001/- to 9,000/- 110/-

9,001/- and above 208/-

Chhattisgarh

Upto 12,500/- Nil

12,501/- to 16,667/- 150/-

16,668/- to 20,833/- 180/-

20,834/- to 25,000/- 190/-

25,001/- & above 200/-

Gujarat

Upto 2,999 Nil

3,000/- to 5,999/- 20/-

6,000/- to 8,999/- 80/-

9,000/- to 11,999/- 150/-

Rs 12,000/- and above 200/-

Karnataka

3,000/- to 5,000/- 30/-

5,000/- to 8,000/- 60/-

8,000/- to 10,000/- 100/-

10,000/- to 15,000/- 150/-

15,000/- and above 200/-

Kerala

Upto 1,999/- Nil

2000/- to ` 2999/- ` 20/-

3000/- to 4,999/- 30/-

5,000/- to 7,499/- 50/-

7,500/- to 9,999 75/-

10,000/- to 12,499/- 100/-

12,500/- to 16,666/- 125/-

16,667/- to 20,833/- 166/-

20,834/- and above 208/-

Madhya Pradesh

Upto 10,000/- Nil

10,001/- to 12500/- 88/-**

12,501/- to 15,000/- 125/-

15,001/- & above 208/- ##

** upto Feb. 88, March 87/-

## upto Feb 208/-, March 212/-

Maharashtra

Upto 2,500/- Nil

2,500/- to 3,500/- 60/-

3,500/- to 5,000/- 120/-

5,000/- to 10,000/- 175/-

10,000/- and above 200/-**

*upto Feb 200/- p.m. & Mar 300/- p.m.

Orissa

Upto 5000/- Nil

5,001/- to 6,000/- 30/-

6,001/- to 8,000/- 50/-

8,001/-to 10,000/- 75/-

10,001/- to 15,000/- 100/-

15,001/- to 20,000/- 150/-

20,001/- & above 200/-

Tamil Nadu

Upto 3,500/- Nil

3501/- to 5000/- 16.50/-

5001/- to 7500/- 39/-

7501/- to 10000/- 85/-

10001/- to 12500/- 126.50/-

12501/- & above 182.50/-

Tripura

Upto 2500/- Nil

2501/- to 3500/- 55/-

3501/- to 4500/- 85/-

4501/- to 6500/- 100/-

6501/- to 10000/- 140/-

10001/- and above 180/-

West Bengal

Upto 5,000/- Nil

5,001/- to ` 6,000/- ` 40/-

6,001/- to 7,000/- 45/-

7,001/- to 8,000/- 50/-

8,001/- to 9,000/- 90/-

9,001/- to 15,000/- 110/-

15,001/- to 25,000/- 130/-

25,001/- to 40,000/- 150/-

40,001/- and above 200/-

This was updated on 19th September 2012

If you have any more question/ doubt regarding HR/ payroll/ Learning/ T & D/ Legal/ C & B/ Employee Relation, You can drop me an email on gupta.aakriti01@gmail.com or also you can visit/ Post on Linkedin.

Regards,

Aakrati Gupta.

Pune


From India, Pune
Hi,

It is a good question that you have asked. Let me explain the background for this:

1. We follow a April to March financial year system;

2. Feb will be the last month for which salary will be paid during the financial year itself (1st week of march) since March salary is usually created as a "Liability" by almost every company (including the Government) and cash-flow happens only in April 1st week, i.e., in the ensuing financial year;

3. Since all taxes due to the Government have to be PAID before the closure of the financial year, the amount is recovered from your Feb salary. If this chance is lost, it is not possible to recover from your salary during the financial year;

4. If the tax were to be paid by the company (not recovered from your salary), they may choose to remit it till 31st march, but this is not the case;

5. FYI, on a different note, some local bodies recover this tax in May and October salaries so that they receive money for spending much earlier. Having said the above, please understand first that professional tax is a revenue for the State Government (local bodies, to be specific) like MV tax or water tax. If the revenue position of the local body is good, they may not impose this tax. I remember there was no professional tax levied by Pimpri Chichwad Municipality (Pune) since they were getting good revenue sufficient to run the local administration from other sources owing to presence of many big companies!

Hope this clarifies.

Best regards to all,

Raajaram Krishnamoorthy

From India, Bangalore

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.


Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHR.Com™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server