New to Payroll? How Do I Handle Monthly Deductions and Taxes Correctly?

Hi, I am new, so bear with me.

Three Questions on Payroll Deductions

1) Let's say a person earns Rs 30,000 gross salary per month (including HRA, medical allowance, etc.). When preparing his monthly payslip, do I deduct Rs. 250 (income tax) from his salary of Rs. 30,000? There is a 10% income tax for those earning Rs. 30,000 per month (or 3.6 lacs per year), so Rs. 3,000 per year for this person, which would amount to Rs. 250 per month. Is this the way it is done, or is it only done yearly? I am asking because I need it ONLY FOR MONTHLY PAYSLIP. Is this deduction okay, that is, subtracting Rs. 250 from Rs. 30,000 equaling Rs. 29,750?

2) Profession Tax in Chennai - What is it, and how to calculate/deduct? Is it mandatory?

3) Other Mandatory Deductions - The company has less than 20 employees, so I don't need PF or ESI, but is there anything else mandatory?

Please help regarding this.

Thanks.

While calculating income tax, the exemptions and deductions must be considered. We have attached the Income Tax Calculator for FY-13-14. You can use it.

Professional Tax in Chennai

Professional tax is applicable in Chennai and it should be paid.

Regards.