How Do You Calculate Professional Tax with Overtime and Other Salary Components? Urgent Help Needed

Hi friends,

Kindly help me out in calculating Professional Tax. Is professional tax calculated taking into account the following components: Gross salary (including overtime, loss of pay, arrears, paid leave encashment)? Please help me... It is very urgent.

Regards,
Sowmya

Professional tax or employment tax is a state-based tax. It is allowed as a deduction from the gross income before computing the tax.

Your query probably aims at a point that in case professional tax is allowed as a credit from the net tax payable (instead of the current process of allowing it as a deduction from the income), the individual would definitely stand to gain to the extent of at least 66.34% of the amount paid as professional tax.

Hanuma

Hi,

Thanks, but my doubt is: suppose the gross salary of an employee "A" is Rs. 10,000 for 6 months, his OT varies for each month as "500", "450", "0", "0", "0", "0". He has a loss of pay as follows: "1000", "0", "0", "0", "0", "0".

Kindly help me in computing the Professional Tax with the above-mentioned figures for both Chennai and Hyderabad.

Thanks,
Sowmya

Dear All,

In the September month salary, professional tax for this session (April-07 to September-07) is going to be deducted as per the following limits. This tax is deducted only from the employee. From April-07 to September-07, the earned gross salary amount is taken into account for calculating the tax amount. The paid professional tax amount can be availed as an exemption in the income tax calculation, provided the individual comes within the purview of the income tax payable limit.

EARNED GROSS SALARY IN SIX MONTHS (April-07 to September-07)

FROM TO P-TAX AMOUNT
Rs. Rs. Rs.
1 UPTO 21000 NIL
2 21001 30000 75
3 30001 45000 188
4 45001 60000 375
5 60001 75000 565
6 75001 & ABOVE 750

Revert for any clarifications.

Regards,
S.P. MURUGANANDA GANESH
9842511533

Is the component include:
Basic Salary
HRA
Transport Allowance
Special Allowance
Education Allowance
Bonus
Encashed Earned Leave

Regards,
Sanjeev

Dear All,

I would like to get confirmation on whether professional taxes will be applicable to us under the following conditions:

- Our corporate office is located in Delhi, and our total strength is 20 employees.
- We have one branch in Panvel, with representatives stationed at various locations across India such as Chennai, Ahmedabad, Kolkata, and Chandigarh to manage operations at our customers' offices.
- Monthly salary processing and control are handled only by the headquarters in Delhi, after which the salaries are transferred to employees' bank accounts.

As I understand, this tax is based on state-to-state variations and tax slabs may change. Please guide us on the above, as we are confused by the different advice provided by various consultants.

Thanks & regards,
Sheetal

Please help me to solve the problem. I am from Hosur, Tamil Nadu. Our company is under the municipality. How can I deduct the P. Tax per month? Is there any change in the P. Tax?

Your head office is in Delhi, and the branch office is in Panvel, Maharashtra. You will have to obtain the P.T. Registration Number under the Maharashtra State P.T. Act. Visit the website mahavat.gov.in to obtain the RC. The current P.T. rate is as follows:

- Up to Rs. 5,000: Nil
- From Rs. 5,001 to Rs. 9,999: Rs. 175
- Above Rs. 10,000: Rs. 200 (except in February, it is Rs. 300, making the total PT payment Rs. 2,500 per annum).

Hurry to avoid delayed penalties and interest.

Regards,
Ramakant

How do you calculate professional tax when an employee's base location and work location are different? Should it be calculated based on the base location or the work location?

Professional Tax Registration and Deduction

Professional tax is work-based only. In government technology, the Drawing Officer is at the Location Base, and the Disbursement Officer is at the Work Base. For example, the Head Office is at the Location Base, and the Branch/Region or Zone is at the Work Base.

Hence, you will have to obtain registration at the PT Office at a certain Work Base only. After that, as per the rates of the concerned state, you will have to deduct the PT and deposit it in the respective State Government Treasury.

Regards,
Ramakant