I would like to know the calculation of professional tax?

I would like to know the calculation of professional tax. Can anyone help me?

Dear Rajeshwari
Professional Tax varies from state to state, hence refer your state laws for Professional Tax

i presume you are dealing with national income tax for your executives. Taxation of expatriates working in India is handled differently. You need to know the tax regulations of their home country and whether India and the respective country has a double taxation agreement.

Am working as HR Executive in a pvt construction company located at Tamil Nadu
Regards
Rajeswari

Professional Tax is calculated on the basis of amount of salary/wages drawn by individual. PT is a State Govt. monthly taxation and is calculated on a "Sliding Scale" (higher income higher tax rate subject to a maximum) which varies from state to state. It is deducted from Employees' Salary and is deposited to the Bank authorised for collection through appropriate challan.

What is the finer point here is along with Profession Tax the Authority also charge something called the "Enrolment Fees" on yearly basis from the Company. This fee is much higher then the PT and it is said "since the Company too is in profession" the must pay Tax.

PT is more critical for Construction Companies because the Taxation Authority do not spare even the Construction Workers and charge PT of Wages paid to each. This truly and indeed is a difficult proposition and cost huge to the Company since recovery from Workers brings unrest. And, with recent enhancement of Wage Rate the absolute amount payable becomes huge and there is no escape rout.

Regards,