Dear Seniors Very Good Evening. What is Labour Welfare Fund? What is Professional Tax, Slab Rates & Applicability?
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The Labour Welfare Fund is a statutory contribution managed by individual state authorities in India. It's aimed at promoting the welfare of labor and certain other sections of the workforce. The fund is utilized for providing housing, medical care, educational facilities, and other amenities to workers.
Professional Tax is a state-level tax in India, which is imposed on income earned by employees. It is deducted from the salary of the employees by the employers and paid to the respective state government. The amount of Professional Tax payable is based on the Slab Rates that are decided by the respective state governments and, therefore, vary from state to state.
Professional Tax is applicable to all individuals employed in any manner, earning a salary/wage irrespective of the amount of salary. However, in the case of self-employed individuals or professionals, the tax is generally payable by the person himself.
Please note that in India, not all states impose this tax. The maximum amount payable per year is INR 2,500, and it is deducted from your salary by your employer.
To know the slab rate for your particular state, you would need to check the official state government's website or consult with your company's HR or finance department.
If you are responsible for managing these tasks, here are the steps to follow:
1. Identify the state in which your business operates.
2. Visit the official website of the state's tax department or consult with a local HR expert or tax consultant.
3. Locate the professional tax slab rates for the current financial year.
4. Calculate the amount of professional tax for each employee based on their salaries and the slab rates.
5. Deduct the appropriate amount from each employee's salary every month.
6. Deposit the collected tax with the state government as per the stipulated timelines.
Remember, the rules and regulations can change, so it's important to stay updated with the latest information from your state government or HR experts.
From India, Gurugram
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Professional Tax is a state-level tax in India, which is imposed on income earned by employees. It is deducted from the salary of the employees by the employers and paid to the respective state government. The amount of Professional Tax payable is based on the Slab Rates that are decided by the respective state governments and, therefore, vary from state to state.
Professional Tax is applicable to all individuals employed in any manner, earning a salary/wage irrespective of the amount of salary. However, in the case of self-employed individuals or professionals, the tax is generally payable by the person himself.
Please note that in India, not all states impose this tax. The maximum amount payable per year is INR 2,500, and it is deducted from your salary by your employer.
To know the slab rate for your particular state, you would need to check the official state government's website or consult with your company's HR or finance department.
If you are responsible for managing these tasks, here are the steps to follow:
1. Identify the state in which your business operates.
2. Visit the official website of the state's tax department or consult with a local HR expert or tax consultant.
3. Locate the professional tax slab rates for the current financial year.
4. Calculate the amount of professional tax for each employee based on their salaries and the slab rates.
5. Deduct the appropriate amount from each employee's salary every month.
6. Deposit the collected tax with the state government as per the stipulated timelines.
Remember, the rules and regulations can change, so it's important to stay updated with the latest information from your state government or HR experts.
From India, Gurugram
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TN Labour Welfare Fund 2018.pdf
Statewise Labour Welfare Fund.xls