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Hello All,

I would like to seek your guidance & assistance regarding the below issue/concern which we are facing in our Organization :

I work for a company in Mumbai and for the state of Maharashtra there is a Professional Tax Applicable which is deducted from our earnings every month. Its Rs.200 for 11 months and Rs.300 for February totalling to an annual figure of Rs.2500.

But in my company the PT is deducted from the NET SALARY (take home salary)

Gross Salary = 40000
- (Deductions) = 3000 (this deduction includes PF, gratuity and other small components)

NET SALARY = 37000 (this is the defined take home salary in our Offer Letter and Appointment Letter)

Now my company deducts Rs.200 from Rs.37000 which is my Net Salary so when the Salary is actually credited to my account at the end of every month we have a difference of Rs.200.

I would like to know is this the correct way to deduct Professional Tax ???? If its yes then I am wrong but if its not the correct way I need your help to let me know the Article & Clause in the Law which gives a clear indication regarding the Deductions of Professional Tax.

Your help will regarding this query will be highly appreciated.

your tax is being calculated on your gross salary and the amount is remaining after PF & ESIC deduction , is your net or take home salary if there is any tax liability then it will deduct from this net salary only.

PT should be deducted on Gross salary (total payable)... Regards Nilesh Dhameliya
What is your confusion.?
Salary cannot called net salary till all concern payment deducted from it. So, Whatever salary you are getting in hand is called NET SALARY. till deduction of PT it cannot called as NET SALARY.

Tax amount is never mentioned in the offer or appointment letter.
Company provides the calculation of "take home" salary, & then deducts the tax on your behalf. If you are expecting that offer letter should mention the taxes, then read the letter again.
There must be a sentence stating that the tax arising from this salary will be deducted as per tax rules of india.
Going beyond the professional taxes, the income tax (as it will be applicable to you, if your salary is 40K/month) can also be deducted from this salary & then it is called "Net Salary".
If your salary slip indicates otherwise, then you can check with your finance department about the proper wording in the salary slip.
Best Regards,

In nutshell your company is not doing anything illegal, they are doing what they are supposed to. Professional Tax is deductible from the Salary
The Professional tax is to be deducted from Gross Salary only. Every state have their fixed PT Slabs.
Salary for the month in Rs Profession Tax for the month in Rs
Less than or equal to 7,500 Nil
7,501 to 10,000 175
10,001 and above 200 per month except for February (Rs 300 for February)
Profession Tax Penalties
- Delays in obtaining Enrollment , a penalty of Rs. 2/per day and for Registration, a penalty of Rs. 5/- per day.
– Providing false information regarding enrollment – Penalty of 3 times of tax amount.
– Non-payment or late payment of profession tax – Penalty is equal to 10% of the amount of tax to be imposed.
– Late filing of Returns – Penalty of Rs. 300 per return.
Profession tax are exempted in the following cases,
1. Senior Citizen above 65 years age is tax exempt.
2. Person suffering from permanent physical disability.
3. Parent of a child suffering from physically disability.
4. Parent of a mentally retarded child.

The employee is responsible to pay the tax like PT, TDS and it the responsibility of the employer to deduct from your salary in time and paid. In the appointment letter the employer may highlight only statutory deductions like EPF, ESIC, and SWWF.
Hello Sir,
Good evening,
I am confused for profession tax.
Form 16 Gross salary deduct Profession tax and PF after Net Salary.
I want to file salary Income tax return in India but I'm confused about profession tax can please guide me about profession tax deducted from gross salary or not on Income tax return sheet.(ITR I)
And if deducted Please let me know under section 80C & 80 CC or what ?

I M so confused about Profession tax deduction. i want to know profession tax in decide on fix salary of employee or actual salary????? please let me know

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