Professional Tax Deduction: What Happens If Companies Skip It?

Professional Tax Deduction: Is It Necessary?

Is it necessary to deduct Professional Tax from employees' salaries? If not, what are the implications? Some companies don't deduct PT. In such cases, what will be the issue? Please comment.

If organizations are registered under the PT Act, they should deduct Professional Tax (PT) from employees. It is mandatory as per the statutory requirement. In case the organizations are not registered, they should immediately register. If the organizations are registered but not deducting, they have to pay the due amount, including fines, penalties, and interest.

Regards

Dear Mr. Jeevarathnam, please let us know whether the PT Act referred to by you is a Central Law or a State Law. Please also try to upload the contents of the PT Act referred to by you.

Regards

Please find the PT Act notice and schedule in Karnataka.

Regards,
V

In all states, the employer has to pay Professional Tax on behalf of the employee. The amount varies depending on the state. It is not mandatory for the PF to be deducted from the employee's salary; however, the employer must pay it by calculating as per the schedule.

Mandatory Filing of Professional Tax Return

Is it mandatory to file a Professional Tax Return? What is the minimum threshold required for filing a Professional Tax Return?

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