Professional Tax Calculation: Should Incentives and EPF Be Included?

Professional Tax Calculation

To compute professional tax, you need to consider incentives and EPF in the calculation. Can incentives and EPF be taken into account when computing professional tax?

Regards

Dear Svenkataram,

The professional tax slabs differ from one state to the other. I understand you belong to the AP region, and therefore the P.Tax rates for 2012 are as follows:

- Rs. 60 for income between 5001-6000
- Rs. 80 for income between 6001-10000
- Rs. 100 for income between 10001-15000
- Rs. 150 for income between 15001-20000
- Rs. 200 for income of 20000 and above

Thank you.

I know the slabs of PT calculated in AP. I have a doubt about what items come under PT calculation. Can incentives (overtime allowance) and EPF be considered as salary for the calculation of PT?

P.Tax is always deducted from Net Salary, which does not include contributions for PF and ESI. It is accountable for Basic Salary, HRA, DA, Conveyance allowance, Medical, and any other Special Allowance.

I hope this clarifies your query.

Regards

Hi Ms. Sharmila Das, PT is deducted from the gross pay. Gross pay includes all the incomes as mentioned by you. Deduction calculations happen separately. Net pay will be Gross - All Deductions (ESI, PF, PT, etc).