Is There a Minimum Employee Requirement for Professional Tax Deductions?

I would like to know if there is any restriction on the minimum number of employees for the deduction of P.T.

Thanking you,

Regards

There is an act that will be applicable for Professional Tax in your area. Please obtain a copy, as this will provide you with all the information you require.

Regards,
M.V. Kannan

Understanding Professional Tax (PT) Deductions

There is no restriction on the number of employees. It is the prerogative of the local municipal corporation to collect PT. Once a company is registered under the Shops & Establishments Act or The Factories Act in any municipal zone, the PT will have to be paid as per the local rules laid down by the local municipal corporation. The only criterion is the amount of take-home salary. Deduction by the employer and depositing it to the government treasury is mandatory.

For further information, you can get in touch with any good local tax consultant.

Regards

As per our knowledge, the following are the Professional Tax Rules:

1. Profession Tax is deductible from the first employee of the organization.
2. The employer has to pay their own professional tax of ₹2500 per annum over and above all employees' Professional Tax.

Tax Deductible for Employees on a Per Month Basis Based on Gross Salary:

- ₹0 - ₹5000.00: Nil
- ₹5001.00 - ₹10000.00: ₹175.00
- ₹10001.00 & above: ₹200.00

Please visit the site mahavat.gov.in for further details.

For any additional assistance, please feel free to get in touch with me.

Regards,
Akshay Bapat
Payline India
[Phone Number Removed For Privacy Reasons]

There is no exemption for ex-servicemen working in civil jobs with respect to P. Tax.

Dear Madhukar, Akshay Bapat has rightly interpreted the professional tax. In the state of Maharashtra, it applies to individuals who earn income, whether they are self-employed or employees. I would like to provide additional information that for incomes of ₹10,000 and above, the rate is ₹200 per month, and in the last month, February, it increases to ₹300 to reach the maximum slab of ₹2,500.

Senior citizens, physically handicapped employees, and parents of disabled children are exempt from this tax.

Regards,
KIRAN KALE