Understanding Professional Tax: Should It Be Deducted on Reduced Salaries?

Dear HR Team,

In A.P., if an employee's gross salary is 15500/- P.M, then the P.T. is 150/- as per the slab. If the employee earned only 14000/- due to loss of pay in a particular month, do we need to deduct the P.T. of 150/- from his salary or not? Please provide clarity on this.

Thank you.

The slab is always based on the salary earned and not on the salary decided. Hope this clarification addresses your query.

Dear Veerabathani,

God bless you. The basic aspect of calculating professional tax is based on annual income and not monthly income. You have to deduct on a monthly basis and deposit. If the basic salary is 15500.00 per month and it drops to 14000.00 for whatever reasons, it has no impact on professional tax calculations. You must recover the amount due and deposit it to the treasury.

Blessings,
Dr. Ram

The slab is always based on the salary earned, not on the salary decided. I hope this clarifies your query.

Dear All,

For professionals, Professional Tax is based on yearly income. For salaried individuals, it is calculated based on monthly earnings and follows a slab basis.

Thanks,
Vidyadhar Bhat