Understanding Professional Tax Deductions for Salaries Over 99,999: Can You Help?

Hi All,

Can you please guide me about professional tax deductions? I am aware of the slabs for Maharashtra; they are as follows:
- If the salary is less than Rs. 2500, there is no deduction.
- For salaries ranging from 2501 to 3500, the deduction is Rs. 60.
- For salaries ranging from 3501 to 5000, the deduction is Rs. 120.
- For salaries ranging from 5001 to 10000, the deduction is Rs. 175.
- For salaries ranging from 10001 to 99,999, the deduction is Rs. 200 (for February it's Rs. 300).

Could anybody guide me on how much the monthly deduction would be for a normal employee if the gross salary exceeds 99,999?

With Regards,
Yoginiie

Hi Yogini,

First of all, your last calculation is incorrect. It does not fall between Rs. 10,001/- to -99,999/-. It actually EXCEEDS Rs. 10,000/-, with PT of 200/- and for February 300/-. Therefore, for Rs. 99,999/-, the PT will be 200/- and for February, 300/-.

For further information, you can visit http://salestax.maharashtra.gov.in, go to "AT YOUR SERVICE," and select the Profession Tax Act. You will find ample information there.

I hope this helps you with the matter.

Warm Regards,
Deeps

Hi Deeps,

Thanks for the reply, but you are not understanding my query. My query is if suppose my gross salary per month is 1.20 lacs and annual is 14.40 lacs, then is there any specific deduction structure under profession tax? Because since I am handling payroll and using software for that, in which they have a provision of the greatest gross salary of Rs. 99,999 and they have not mentioned anything about profession tax deduction if the gross salary exceeds Rs. 99,999.

With Regards,
Yoginiie

Dear Yoginiie,
I very well understood your question. That's why I mentioned if it is exceeds Rs. 10,000/- and to no limit PT will be remain same as 200/- PM & only for month of Feb. 300/-.
You said you're using software for payroll. It does not mean that whatever software says should be always right. May be software developer has not enter the value for above Rs. 99,999/-
As per my knowledge it should be Rs. 200/- (300/-),
But to make sure I would talk to one of my uncle who is working in Professional Tax Department n I'll get back to you on Monday.
Till then Take care
Regards
Deeps