Understanding Professional Tax: How Is It Calculated and What Income Is It Based On?

Hi,

My question pertains to the Professional Tax Deduction. I would like to know the following:

- How is the Professional Tax deduction amount calculated?
- Is this calculation based on the basic pay or the total income before tax?

Looking forward to your opinion/advice.

Regards

Professional Tax is to be deducted on Basic + HRA, but the limit changed from F.Y. 2009-10. It is as follows:

1. Above 5000 - 10000 (basic + HRA) = Rs. 175/- standard
2. Above 10000 onwards Rs. 200/- in February Rs. 300/- (Total for F.Y. Rs. 2500/-) standard.

I hope this information will solve your problem.

Regards,
Kavita.

Dear Kavita Madam,

Can you help me understand in which state the above calculation is applicable?

S S KARADKAR

Dear Kavita Madam,

Professional Tax is deducted at a rate of 10% of the professional/consulting fees. Where did you obtain the figures of Rs. 175 and Rs. 300 from? I am very eager to learn more about this.

Regards,
H. SUNDARA RAMAN

Dear Mr. Sundara Raman,

This calculation is provided by our P.F./ESIC/P.T. consultant. I deduct our office employees' P.T. as per his instructions. It is specific to Maharashtra State only. If there are any errors, please provide the details. I would like to discuss this matter with our consultant. As per your information, professional tax is deducted at a rate of 10% of the professional/consulting fees. If this is the case, I should have consulted with him. There seems to be something missing.

Thanks & Regards,
KRJ

Here, you are mixing two separate subjects: Professional Tax and Tax deduction at source.

(1) Professional tax pertains to our direct employees; for salaries ranging from Rs. 5001 to 9999, it is Rs. 150.00 per month, and for salaries above Rs. 10000, it is Rs. 200.00 per month. In February, the rate is Rs. 300.00. (The above rates are based on Maharashtra.)

(2) TDS is different. For those working as vendors, contractors, and consultants in your company, you need to deduct TDS at 10% of the bill amount.

Ilyas Hungund
9820472697

Hi,

Here, you are mixing two separate subjects, Professional Tax, and Tax Deduction at Source.

(1) Professional tax pertains to our direct employees: @ 5001 to 9999 Rs. 150.00 p.m., and above 10000 Rs. 200.00 p.m. In the month of February, it is Rs. 300.00. (The above rates are based on Maharashtra.)

(2) TDS is different. For those working in your company as vendors, contractors, and consultants, you need to deduct TDS at 10% on the bill amount.

Ilyas Hungund
9820472697.

Hi,

Professional Tax (PT) is calculated at Rs 2,500 annually from the salary of an employee.

Regards,
Rohit Kumar

Hi,

My question pertains to the Professional Tax Deduction. I would like to know the following:

- How is the Professional Tax deduction amount calculated?
- Is this calculation based on the basic pay or the total income before tax?

Looking forward to your opinion/advice.

Regards

Yes, Ilyas, you are right.

Professional Tax is deducted from direct employees working in an organization, and TDS (Tax Deducted at Source) at 10% plus Education Cess, as applicable, is deducted from professionals who work as consultants in the organization.

Secondly, I would like to correct the Professional Tax amount to Rs. 175/- instead of Rs. 150/- (for Maharashtra state only). Rest is okay.

Best Regards,
Arun

I have a doubt regarding P.T. Is professional tax calculated based on the number of days of attendance, or is it fixed per month? If it is calculated based on the number of days present, how should it be calculated?

Thanks,
Anand Sharma

We are employed in Gujarat with our corporate office in Mumbai, and our salary is being credited from the corporate office. Since the first day, our employees' professional tax has been deducted and deposited in Mumbai only. Now, we want to deposit the tax in Gujarat for employees working there. Will there be any legal problems? Or do we need to acquire another Professional Tax Registration?

With best regards,
Y. Nitesh

What is the current professional tax slab? Has it remained the same or has it increased? Please provide details.

With regards,

Kalidhasan Natarajan
Mobile: [Phone Number Removed For Privacy Reasons]

What is the current professional tax slab? Is it the same, or has it increased? Please provide details.

With Regards,
Kalidhasan Natarajan
Mobile: [Phone Number Removed For Privacy Reasons]

I wanted to know if PT deductions from employees are based on their take-home salary or gross salary. Please guide me.

Hi friends, kindly help me out in calculating professional tax. Is professional tax calculated taking into account the following components?

Professional Tax is not paid before the 2012-2013 financial year. Please help me understand how to calculate professional tax, including interest and penalty.

I have a query. Let's say I have an employee joining in the last week of Feb. His salary is $15,000. But since his salary for Feb would be less than $10,000, would the professional tax deducted be $175 or $300?