Understanding Professional Tax in Bangalore: Employee Deductions and Employer Contributions Explained

Dear Seniors, we are planning to open a branch in Bangalore, which falls under the Karnataka Shop Establishment Act where Professional Tax is applicable.

Professional Tax Process Inquiry

I want to know about the entire Professional Tax process from registration to completion. If the salary is more than Rs. 15,000, then Rs. 200 is applicable.

Question on Deduction and Employer Contribution

My question is: Is the Rs. 200 deduction applicable only from the employee's side, or is there any amount that the employer must also contribute? Can we include the Rs. 200 as part of the CTC breakdown?

Could you please advise on the registration process?

Regards,
Kunal Kumar

Attribution: https://www.citehr.com/452123-profes...#ixzz2LadeO3oy

Rs. 200 is deducted only from the employee's side. You can show this amount as a breakup in the CTC.

Regards,
Indhu

There is no contribution from the employer's side, which is the deduction for paying to the local authority against the income earned by the individual in that place. This should also not be shown in the employee's CTC, as per the Indhu statement.

Regards,
Ashok.

Understanding Professional Tax (PT) and Income Tax (IT)

In simple terms for your reference:

• **PT:** Tax amount paid to the local authority for income earned in that particular location. The amount varies state-wise, with a maximum of ₹2,500 per year.

• **IT:** Tax amount paid to the central government for the income earned within India as per the IT Act.

Regards,
Ashok.

There is no deduction from the employer's side. PT has to be deducted from the employee only and paid to the local authority as per their applicability.

With Regards,
Vijay Vaidya