Do We Need to Pay Professional Tax for an Employee on Leave Without Pay for a Month?

Hi, can someone help me: do we need to pay professional tax for a particular month for an employee who is on leave without pay for the whole month?

Thanks

When the employee is not present for the whole month, there is no need to pay his/her professional tax for that month.

You are from Mumbai, and your query is related to Maharashtra Professional Tax. You are liable to deduct PT and remit it accordingly when the gross earnings of an employee are more than Rs. 5000/- in a particular month. When an employee is on loss of pay, he has not earned any wages. Where is the question to pay PT by you in such a case?

When an employee is on LOP, there are NO earnings for the month. If you are displaying full earnings and deductions for the month, that is incorrect. For example, if his monthly gross is ₹15,000/-, his actual gross is ₹15k, whereas the earned gross will be zero. Therefore, there will be no PT.

PT deduction is based on the salary drawn. If there is no pay, it means no PT for that particular month.

Understanding Profession Tax

Profession tax is a type of tax collected by the municipality, corporation, or panchayat from professionals working in an establishment. This tax covers individuals involved in professions, trade, and employment. It is mandatory for all employers to collect tax from employees based on their earnings. The tax collected is used for the welfare of society at large. The collection of profession tax depends on the states and is governed by the Professional Tax Act, a state act. In some states, it is collected every month, and in others, it is collected on a half-yearly basis.

Professional Tax Deductions

Professional tax is deducted based on earnings, and different states follow different slabs. When there are no earnings, professional tax is not applicable.

Thanks and Regards,

Srinivas Marnade

Understanding the Professional Tax (PT) Process

Please explain the PT process after collecting and preparing the challan form. Should we pay at the bank to the commercial department? What is the online process and the PT returns periodicity?

Thanking you.