Salary Deduction Dilemma: How to Calculate Profession Tax for 15 Days of Work?

Hello, my query is if one employee's monthly salary is Rs. 8000/- and suppose he worked 15 days in a particular month, how much amount should we deduct from his salary as Profession Tax?

Depending on your city, check the professional tax rate slab. In Mumbai, people earning a salary of more than ₹10,000 gross pay a professional tax of ₹2,500 annually (₹200 per month from March to January and ₹300 for February). Also, note that PT is not deducted on a pro-rata basis; it's a fixed amount. So, even if the person works for only 2-3 days of a month and gets a salary for that month, we are to deduct PT for that month. Therefore, it is immaterial about 15 days of work.

From your profile, I believe you are from Delhi and so is your firm. I have found an article that states that PT is not applicable in New Delhi. Check it at http://What is Professional Tax and ...Rate in India?

Hope this helps you...

Dear Trushna, Professional Tax depends on the city where your organization is located. Please find the attached Professional Tax rates for various cities.

Regards

Understanding Professional Tax

Let's first understand what Professional Tax is. Professional Tax is a tax levied by the state on income earned through a profession, trade, calling, or employment. This tax is imposed based on slab rates that vary depending on the individual's income.

Professional Tax is not applicable in all states, and the slab rates vary from state to state. In some states, Professional Tax is nil up to a certain income threshold. Additionally, these slab rates are subject to periodic revisions. You can easily access this information on the internet, but ensure that the site is authenticated and the slab rates are up-to-date.

Regarding your question, you need to specify the employee's location. Check the slab rates for that particular state and deduct the appropriate amount based on the employee's income. Ensure that the Professional Tax deducted is submitted on time.

Please let me know if you need any further assistance.

Best regards

Professional tax is always on earned income, so it should be based on a 15-day income.

Kindly note that the Professional Tax is applicable based on earnings. In case you are in Maharashtra, the monthly salary is Rs. 8000, and for 15 days it will be Rs. 4000. If it is less than Rs. 5000, then no PT is applicable in this case. The same logic should be applied to the state you belong to.

Regards,
Ramakant

@Chantig and @Ramakant,

You have quoted that PT is to be deducted based on the days one has worked.

However, when I joined one of my offices on the 26th of the month and worked only for 4 days, my PT for that month was still deducted. My monthly salary at that time was 15,000, and I am sure that the 4 days' salary would not cross the prescribed 5000 limit to make me eligible to pay PT for the month.

Do you have any sources that mention PT is to be paid on a pro-rata basis? I have always been under the impression that PT is to be paid on the whole amount, irrespective of whether we work for the full month or partially.

I would appreciate it if you could share the source of information and help me clear my doubts.

For AP, PT will be zero as the GO passed this February. Up to Rs. 15,000 of gross salary, there will not be any PT deducted.

Sir, I am working in Mumbai as an accountant. Part of the employees work in Delhi and Mumbai. I need to release the salary for the Delhi site and Mumbai. Kindly let me know if PT will be applicable for the Delhi site.

Sir, I am working in Mumbai as an accountant. Part of the employees work in Delhi and Mumbai. I need to release the salary for the Delhi site and Mumbai. Kindly let me know if PT will be applicable for the Delhi site. Please reply. It's urgent.

Hello. My query is if one employee's monthly salary is Rs. 17,000/- and he worked for 2 months, how much should we deduct from his salary as a Profession Tax, considering his date of joining is 25/07/2018.