Thread Started by #Anonymous

Dear Experts, Kindly clarify few points on Professional Tax Deduction, raised by client.
1- If an employee had worked only for 4 days in a month and his payable salary is 4000/-. Had is worked for the entire month ,his salary would be 22000/-
Questions
A] Is PT applicable ,since the minimum limit is 7500/-?
B] How much PT should be deducted 175 or 200/- ?
C] Is PT calculated on Fixed Gross or payable amount every month.
Requesting guidance ! Please share any notifications ,if available regarding the same.
Thanks
11th March 2019 From India, Indore
Dear friend,
Are you talking about PT in MP state? If so, refer the notification/details in the attachment.
The PT has to be calculated on the gross salary actually drawn rather than how much he would have drawn had he/she worked or eligibility. This is nothing to do with how many days one was present or absent on duty.
Professional Tax in Madhya Pradesh:
Working professionals, traders and people employed in other places have to pay professional tax if their salary qualifies for it. The professional tax levied is collected by the state government of Madhya Pradesh and the tax levied depends on the professional tax slab rate of Madhya Pradesh.
Professional Tax Slab Rate in Madhya Pradesh:
Madhya Pradesh falls under the category of states that charge professional tax. The professional tax amount to be paid depends on the professional tax slab rate of the particular state. The tax slab rate is different for each year. Given below is the professional tax slab rate for Madhya Pradesh (pl.get it updated from the dept.).
Monthly Salary Tax Implications:
Below Rs. 18,750 - No tax levied
Between Rs. 18,750-Rs. 25,000 - Rs. 125
Between Rs. 25,000-Rs. 33,333 - Rs. 167
Above Rs. 33,333 -Rs. 208
Exemptions:-
Professional tax is not applicable for:
Assessees over the age of 65.
People suffering from 40% or more of permanent disability or blindness.
Parent or guardian of a physically challenged or mentally retarded child.
Consequences of Late Payment
The penal provisions listed below pervade all the obligations to be met by the employer and the employee:
- Delay in obtaining the Certificate of Registration – a penalty of Rs. 5 per day (for an employer) and Rs. 2 per day (for unemployed but earning individuals).
- Delay in the payment of professional tax – a penalty of 2% per month. Non-payment of the same will force the assessee to remit 10% of the total tax due.
- Delay in filing the returns – a penalty of Rs. 1000, which is applicable for up to a month of the delay. Returns not filed after this period will enhance the penal amount to Rs. 2,000.
- Falsified or incorrect information – a penalty that is thrice the liability of professional tax.
Professional Tax Amount: This slab rates usually moderated/amended from time to time. The amount of professional tax levied usually is a slab amount based on the gross income of the professional. The tax amount is deducted every month from the individual's salary. Every state has a different tax slab and the amount is based on that tax slab.
Who has to pay Professional Tax?
As stated in the Article 276 of constitution of India, the tax shall be levied on professions, trades, callings and employments in accordance with provisions of the act. Every Indian resident who is engaged in any profession, trade calling or employment and earning income has to pay profession tax to the state government compulsorily.
Who deducts Professional Tax?
The owner of a business\institution is responsible for deducting professional tax from their employees' salary/income. The amount is collected from the persons and later remitted to the state commercial tax dept.
11th March 2019 From India, Bangalore

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File Type: pdf MP Professional Tax Act, 1995.pdf (925.7 KB, 8 views)

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