Understanding Profession Tax: Why Are Deductions Made from Your Salary?

Dear Friends,

Can anybody help me with information about the profession tax and why deductions are made from an employee's salary?

I am looking forward to your reply.

Please refer to the attachment; it will help you understand better!

Dear Karthik,

In short, professional tax is a tax levied by states on employment. It is usually slabbed and deductible from income tax.

Regards,
Shreekanth.P.R

Hi Siva Kumar, How do I calculate the professional tax from my salary? Please send me the details. I have to pay the professional tax for 6 months.

Example Calculation

For example, the government slab rate is above 75,000/-, 75,000/6 = 12,500. If the salary is above 12,500, then I have to pay 1,095/-. This is the slab rate in Chennai.

Required Documents

What documents are required when I have to pay the amount? Please provide me with detailed information about that.

Let's discuss.