Payroll Dilemma: Should We Deduct Professional Tax for Both January and February Salaries?

Dear all,

We have an employee to whom we did not pay the January 2011 salary; hence, there was no PT deduction for him in January. However, in the month of February, we are paying him two months' salary (January & February).

I would like to know if PT will be deducted only for the month of February or if we have to deduct PT for two months.

Regards,
Sameer

You have to make two months' PT deductions because you have paid two different months' salaries. The timing of the payment does not determine which month the deduction should be applied to.

For PT deduction, there is a slab given by the government in Gujarat (GPT - Gujarat Professional Tax). The salary slab is as follows:

- ₹0 to ₹2,999: ₹20
- ₹3,000 to ₹5,999: ₹40
- ₹6,000 to ₹9,999: ₹80
- ₹10,000 and above: ₹120

I don't know the exact figures.

Even if you pay 2 months' salary together, the PT is calculated per month, i.e., for each salary. Obviously, if the employee worked for January and you didn't pay him, the onus is on you to pay up. If he had been on unpaid leave or if his earnings are equal to or below the minimum salary slab of the respective state for Professional Tax, only then can you show that no PT was applicable. In all other cases, PT would need to be deducted and paid to the government.

Regards

PT Calculation

You should have prepared the wage sheet immediately after the expiry of January with the deduction of the PT amount. The fact that you could not make the payment for that month is another issue.

I suggest that you prepare two different wage sheets for January and February so that you can pay the PT amount using two separate challans.

Regards,
PSS

You have to deduct PT for two months as the deduction is for every month's salary payment, whether you pay it every month or after two months. The only question you need to address is whether the payment to be made falls within the PT category.