What If Professional Tax Not Being Deducted From My Salary ?

al qadeer
Hi all,
I am working in an MNC, and i got an offer in other company where they are offering me salary of 22,000 rupees per month (this is take home salary. there are no deductions from salary, hence gross salary = net salary).
Here my question is:
My company is not deducting professional tax from my salary. Will there be any problem for me in future ? or its total emplyer's risk in not paying professional tax ?.
I think professional tax is the only mandatory deduction from salary, as PF deduction is not compulsory for the salary of 22000.
Also please suggest me is it good to accept the offer. Does this company looks safe for my career?
govidude
Hi,
Depending on the state you work, Professional Tax might not be applicable.
pasupathieswaran
As on date The Eligibility is upto 15k only. But the EPFO has on its cards to raise the ceiling limit to 25 K effective 1.4.2017
Regarding Professional Tax the Employer will Notice from the Corporation or Municipal Authorities to pay for the employees also apart from the Organization
al qadeer
Hi PASUPATHIESWARAN,
Thanks for useful information on PF.
Regarding Professional Tax, does the employer only will be notified and/or penalized by the governament or the employee will also have to suffer in any kind later(or when he change company).
this would help me in making decision on the offer i got, which I mentioned in my initial question.
PL Kanthan
With regard to Professional Tax, as is rightly observed, it depends on the State where one is working. In case in that state, PT is not applicable, then it need not be deducted from salary.
Now, if it is applicable in the State, 1) it can be deducted from the salary and remitted to tax authorities; or 2) without deducting from salary, it is employer's responsibility to remit applicable PTx to tax authorities. Tax authorities are not concerned whether it was deducted from salary or not, they only concern about the remittance.
May be that Rs.22,000 carry home salary offered by the company is after deducting the Prof Tax.
wishes
al qadeer
Hi PL KANTHAN,
Thanks for your response.
What I understood now is it's only employer's responsibility to deduct professional tax from employee's salary or not to deduct.
And when I asked the HR manager of that company in regards professional tax and deduction, she said that currently they are not paying professional tax to government but they are planning to do so in future (as PT is applicable in the state).
If a company does not pay professional tax to government authority even after it is being eligible to pay. Will the employees of the company effected / punished in any manner from government or the employer only get notice / penalty from tax authorities.?
Simply, are the employees safe or they are in risk if the company fails to pay professional tax to state government?
Answer would be appreciated.
Shrikant_pra
Don't bother, it is employer's responsibility to deduct PT and not employee's.
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