Understanding Professional Tax: Should It Be Based on Fixed or Earned Gross Salary?

Hi,

Please clarify for me the following: Is Professional Tax (PT) payable on the Fixed Gross Salary or the monthly earned gross?

For example, Mr. X's Gross salary has been fixed at Rs. 20,000/-. However, in a particular month, he only attended work for 15 days, resulting in his Gross salary being only Rs. 10,000/-. Now, is he eligible to pay PT of Rs. 200/- (since the fixed gross is Rs. 15,000 and above) or is no PT applicable since his earned Gross is below Rs. 15,000/-?

Regards,
Santhoshraj

Hi Santhosh,

PT is calculated on the monthly earned gross only. If any employee is earning a gross salary lower than 15000/- in any month, then PT shall be exempted for that particular month.

Profession tax is a state subject. So please tell us which state you are talking about.