Understanding Profession Tax: What Salary Components Affect Your Tax Bracket?

Dear Sir/Madam,

I have a query regarding profession tax. The query pertains to the definition of salary for the purpose of profession tax. Specifically, I am inquiring about which components should be included when calculating salary to determine the profession tax bracket for an assessee.

Gross entitlement of salary, including all allowances and benefits payable to the employee, is calculated for the professional tax slab.

So, is the employer's contribution to the Provident Fund included in the salary component for the purpose of determining the slab?

Is the employer's portion of EPF or ESIC payable to the employee? It's a statutory liability of the employer to the department for PT purposes. For all salary components, including wages/salary, basic/DA, special allowance, HRA, TA, conveyance, and overtime, are to be calculated.

Please answer whether employees' contributions to PF and ESIC should be included while calculating salary for the purpose of professional tax.

Contribution of an employee is deducted from his gross earnings.

PT is deducted on gross earnings before any deduction.

So basically employees' contributions to PF and ESIC should be included while calculating salary for the purpose of professional tax.