Professional Tax Confusion: Is It Based on Gross or Net Salary?

Professional Tax Calculation: Gross or Net Salary?

Is Professional Tax (PT) calculated on gross salary or net salary? If it's not based on gross salary, will it be a fixed amount? Kindly help me.

Regards

The Professional Tax is calculated based on the Gross Salary. The remittance period is monthly, with the due date for Andhra Pradesh being the 15th of every subsequent month. The tax slabs are categorized as follows:

- 0-5000: 0
- 5001-6000: 60
- 6001-10000: 80
- 10001-15000: 100
- 15001-20000: 150
- 20001-500000000: 200

Thank you.

I am confused about the PT slab for Gujarat state. I follow the below slab:

0 to 2999 = zero
3000 to 5999 = 20
6000 to 8999 = 80
9000 to 11999 = 150
12000 and above = 200

Could you please confirm if my understanding is correct?

Thank you,
Balvant

Thank you for your valuable reply. Is the PT slab dependent on the state level? I am confused about whether ESIC is applicable somewhere. As we are in the construction field, do we have to deduct PT according to that state?

We have one site located in Mumbai where ESIC applies. Do I have to deduct PT and submit it to the concerned authority?

Thank you,

Balvant Dodiya

Understanding ESI and Professional Tax (PT)

Once an area is covered under ESI, the employer must register and comply with the regulations.

Professional Tax (PT) Calculation

PT is calculated on the total gross salary over six months. It can be paid twice a year—once in September and again in March. The Professional Tax rate varies from state to state.

Thank you, but I still don't understand whether PT is applicable in an area where ESIC is applicable. The location I am talking about is already covered under ESIC, yet the client is asking for PT.

Awaiting your reply.

Thank you,
Balvant

To be more precise and clarify it further, PT is a tax-exempted deduction from the employee, while ESI relates to employee insurance where both the employee and employer contribute. Both are different requirements that need to be fulfilled. Is there still any confusion regarding your query?

Regards,
Balvant

PT and ESIC are different aspects. If your area is covered under ESIC, then the employer has to register and follow the same. In Gujarat, you have to deduct PT on Gross Salary and deposit the same at your nearest City Civic Center (Municipal Corporation) by the 15th of every subsequent month, or interest is charged at 18% per annum. For further details, contact your nearest city Civic Center.

PT Slabs

- 0 to 2999 = zero
- 3000 to 5999 = 20
- 6000 to 8999 = 80
- 9000 to 11999 = 150
- 12000 and above = 200

Regards,
Jignesh Patel.

PT is always calculated on Gross Salary only and not on the net salary.

Regards,
Venkat
Bangalore

Jharkhand Government Introduces Professional Tax (PT)

Recently, the Jharkhand government has introduced Professional Tax (PT) in the state, effective from January 1, 2012. The slabs are categorized as follows:

- Up to ₹3 lakhs: Nil
- ₹3 lakhs to ₹5 lakhs: ₹1,200 per annum
- ₹5 lakhs to ₹8 lakhs: ₹1,800 per annum
- ₹8 lakhs to ₹10 lakhs: ₹2,100 per annum
- ₹10 lakhs and above: ₹2,500 per annum

Thanks,

Manohar