Professional Tax Calculation [Thread 51672]

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 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.10000 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 September month salary , Professional tax for this session ( April-07 to September-07) is going to be deducted as per the following limit.
This tax is deducted only from the employee.
April -07 to September-07, 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 if Individual comes within the purview of the income tax payable limit.
EARNED GROSS SALARY IN SIX MONTHS (April-07 to September07)


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 copmponent include:
Basic Salary
HRA
Transport allowance
Spacial allownace
Education Allowance
Bonus
Encashed Earned Leave
Regards
Sanjeev

Dear All
I would like to get the confirmation that whether professional taxs will be applicable to us or not under below conditions:-
- Our corporate office is at Delhi and out total strength are 20.
- We have one branch, which is at Panvel. In addition, one representative are seating at different location in India like Chennai, Ahmedabad, Kolkata, Chandigarh to take care of operations at our customer’s office.
- Monthly Salary process and controlling has done by HQ (Delhi) only and then we transfer it to employee’s bank accounts.
Asi know this tax is bases upon state to state and slab get change so Please guide us on above, as we are very much confused on different remarks given on the same by different consultant.
Thanks & regards
Sheetal

please help me to solve the problem ,i am form hosur Tamil Nadu our company in under munipality how i can deduct the P.tax per month is there any change in the P.Tax

Dear Sheetal Verma,
Your head office is at Delhi and branch Office at Panvel i.e. in Maharashtra.
You will have to obtain the P.T. Registration Number under Maharashtra State P.T. Act. Visit Site. mahavat.gov.in obtain the RC.
Present P.T.Rate is upto Rs.5,000 Nil. 5001 to 9999 Rs.175 and Above 10,000 Rs. 200. (Except Feb 300 on in case of Rs.200.00 this makes the total PT payment to Rs.2,500 pa.)
Hurry to avoid delayed penalty and interest.
Ramakant

how do you calculate professional tax when employees base location and work location are different.? shouls it be calculated on base location or work location?

Dear Poornima,
Professional tax is work base only. In Govt technology the drawing officer is at Location Base and Disbursement Officer is at Work Base. I.e. Head office is at Location Base and Branch/ Region or Zone is at work base.
Hence you will have to obtain the registration at PT Office at certain Work Base only. After that as per rates of the concerned state you will have to deduct the PT and deposit in respective State Government Treasury.
Ramakant