How Does Taking 3 Days Leave Without Pay Affect Professional Tax and TDS?

I would like to know if an employee has taken 3 days of LWP (Leave Without Pay), will it affect their professional tax and TDS? The employee's gross monthly income is ₹44,250, for which her TDS is ₹2,758 per month. The basic salary of the employee is ₹22,000.

Calculation:

- ₹44,250 * 12 = ₹531,000
- ₹531,000 - ₹200,000 (IT Exemption) = ₹331,000 (Taxable Income)
- 10% of ₹331,000 = ₹33,100 (Yearly TDS)
- ₹33,100 / 12 = ₹2,758

Please correct if this calculation is wrong.

I am attaching two files pertaining to income tax calculation. I hope this will help you calculate in a better way. Professional tax and income tax are based on the earned wages, so there won't be much of a difference for 3 days of leave without pay.

Regards,

Can anyone tell me if an employee has taken 3 days of LWP (Leave Without Pay), will it affect their professional tax and TDS? And if yes, in what proportion?

Professional Tax and TDS Impact with Leave Without Pay in Maharashtra

In Maharashtra, for a salary band of Rs. 10,000 and above, there is a fixed Tax on Profession (PT) amounting to Rs. 200 per month (for 11 months except February) and for February Rs. 300. This totals to Rs. 2,500 per year. So, by having 3 days of LWOP, PT is not going to be affected. However, TDS will be affected, as the 3 days' earnings are less due to LWOP.

Regards

His salary is Rs. 44,250.

Less: Salary for 3 days LWP (proportionately) - Rs. 4,425 (1,475 x 3).

Balance salary for PT & IT - Rs. 39,825 (so no difference as far as PT is concerned); however, there could be a marginal difference for IT proportionately, which is negligible.

Impact of Leave Without Pay on Professional Tax and TDS

Professional Tax is a fixed amount; hence, it will have no impact from 3 days of LWP (Leave Without Pay). As regards TDS, it is calculated as per the Income Tax Law/Rules in force for AY 14-15. Advance tax may be deducted at the same rate as being deducted earlier. The actual Income Tax amount will be arrived at by taking all factors and deductions under various relevant Sections. Accordingly, the Advance TDS may be deducted from the final Income Tax liability, and the balance amount will have to be deducted plus 2% Education Cess thereupon.

Regards,
AK Jain

Dear friend,

For your reference, please find the attached PT Slabs prevailing.

Regards,

Professional tax is not deducted when an employee takes a 1-month leave without pay. However, when the employee rejoins their duties, as per the Professional Tax Act, Rs. 2500 per annum of professional tax is required to be deducted. How can we fulfill this clause?

The PT rates applicable for Maharashtra are as follows:

Professional Tax in Maharashtra

Monthly Salary Professional Tax Rate Per Month
Up to Rs 7,500 (Rs 10,000 for Women) Nil
From Rs 7,500-10,000 175
Above Rs 10,000 Rs 200 per month, but Rs 300 in February

The rates are based on the above slabs on a monthly salary basis, not on an annual or CTC basis. Please note to always consider the monthly salary earnings. Also, refer to the attached contribution by Amrish for additional information on the subject.

I am working in a startup software company in Bangalore. The total number of employees in our company is 5. I have been with this company since May 2017 to date (March 2018). When I joined, my salary was INR 3,00,000 per annum (take home). After 5 months, based on my performance, I received a 50% increment, making my take-home salary INR 4,50,000 per annum effective from October 2017 to date (March 2018).

We are unsure if the employer is deducting and paying our Professional Tax (Rs.200) and TDS. Nevertheless, all our salaries are directly credited to our personal bank accounts from the company account.

My concern is that the employer is issuing incorrect payslips. Please refer to the attached payslips for details.

Could someone please advise if there would be any implications for me as an employee if PT and TDS are not being paid by the employer? Additionally, I would appreciate any suggestions for resolving this issue.

Thank you