Confused About Professional Tax Deductions on Payslip? Let's Figure It Out Together

Hi,

Can anyone help me by explaining how Professional tax is calculated? I was able to find the professional tax rates through browsing, but I am confused when I see the PT deduction in my payslip.

Rates:
21,000 - 30,000 = Rs. 60
30,001 to 45,000 = Rs. 150
45,001 to 60,000 = Rs. 300
60,001 to 75,000 = Rs. 450
Above 70,001 = Rs. 600

I just want to know whether the deduction amount is for half-yearly or monthly. For example, if my half-yearly earnings are Rs. 50,000, will the deduction be Rs. 300 for 6 months or Rs. 300 deducted monthly? When I come across the payslip of the staff, I find that the Professional Tax deducted differs from one month to another. Please help me out in calculating monthly Professional Tax.

Regards,
Krithika

Hi Krithika,

Professional Tax is calculated on Gross Salary as per the slab fixed by the Government. If the Gross Salary is less than Rs. 3000/- per month, the Professional Tax will be 0. For a salary band between Rs. 3000/- and Rs. 6000/-, it will be Rs. 20/- per month. For a salary band between Rs. 6000/- and Rs. 9000/-, it will be Rs. 40/- per month. For a salary band between Rs. 9000/- and Rs. 12000/-, it will be Rs. 60/- per month. For a salary greater than Rs. 12000/-, it will be Rs. 80/- per month.

Regards,
Sree

Hi Sreekanth,

Thank you for your response. Can you also assist me with Income Tax calculation?

I have noticed that Income tax is deducted monthly from employees for this year. My question is, how can they deduct income tax without knowing the actual amount earned by the employee for the year? Do they calculate income tax based on assumptions from the gross salary?

Please clarify.

Regards,
Krithika

Hi Krithika,

Income tax is calculated based on the current salary, what the employee earned, and what they are supposed to earn. You can ask all your employees to submit a declaration form that contains their investment plan for the current financial year and also request them to submit proof for the same in February. Based on this information, you can provide exemptions on the projected amount. Then, calculate the income tax on the remaining amount and deduct the sum equally from now onwards for higher income. If the amount can be deducted from one or two months' salary, then make the deduction in February and March, after verifying the proofs submitted by the employee.

Will this help you?

Regards,
Sree

Hi Krithika,

PT is calculated on the fixed amount given by the corporation of the concern metros in various states. i.e., state to state, the PT differs. Krithika, for which state are you asking about? PT is paid twice a year in March and September.

For example, if A's gross is 4000/-, then multiply Rs 4000 * 6 months, which comes to 24000/-. PT Slabs for Chennai are as follows:
- Up to 21000: NIL
- 21001 to 30000: 75
- 30001 to 45000: 188
- 45001 to 60000: 390
- 60001 to 75000: 585
- 75000 to > 810

Based on the given slab, you have to deduct. Basically, PT can be deducted on a monthly basis or once every six months. But if you deduct monthly, that will be easier for you.

K.U. Ramesh

I want to know whether you have mentioned the slabs according to salary correctly because I want to understand if it varies according to states. In my current organization, we deduct P. Tax in Mumbai. If the salary is greater than 10000, then it is 175; if it is less than 10000, then it is 200. Please advise.

Regards,
Dinesh Shankar

If you are an employee in TN, your PT will be deducted once in six months. That is, if your six-month total gross comes under this slab, your Tax will be Rs. 300 for six months.

I think this will clarify your doubt.

Regards,
Deepa SR

Hi,

Can anybody send me the revised professional tax slab for the Chennai area? I think the tax for the 2nd half, which we have to pay by this month, has been revised.

Hi Krithika,

The professional tax varies from state to state, and all the rates are available with the commercial tax officer. Kindly obtain the PT rate list from the CTO, and if you notice any discrepancies, you have the right to inquire with your HR. You can log in to your state's commercial tax officer website.

Hi,

Can anyone help me by explaining how Professional tax is calculated? I was able to find the professional tax rates through browsing, but I am confused when I see the PT deduction on my payslip.

Rates:
- 21000-30000 = Rs. 60
- 30001 to 45000 = Rs. 150
- 45001 to 60000 = Rs. 300
- 60001 to 75000 = Rs. 450
- Above 70001 = Rs. 600

I just want to know whether the deduction amount is for half-yearly or monthly. For example, if my half-yearly earnings are Rs. 50000, will the deduction be Rs. 300 for 6 months or Rs. 300 deducted monthly?

When I come across the payslip of the staff, I find that the Professional Tax deducted differs from one month to another. Please help me in calculating monthly Professional Tax.

Regards,
Krithika

If the employee is on ESI leave for the half-year, then how should Profession tax be deducted? Please explain in detail.

R. Sankar
Chennai-45