Payroll Confusion: How to Calculate PT Deduction When Employee Has a Week of LOP?

Dear All,

I just have a query regarding payroll and PT deduction.

The salary of an employee is 12000, and PT applicable is 200 (2500 p.a). However, in a particular month, the employee is absent for a week and has LOP/LWP for a week, i.e., 7 days. Consequently, their net salary for the month is 9200.

So, the question is, what will be the deduction for PT, 200 or 175?

I would appreciate your guidance on this matter.

Thank you,
Harshad

Dear Mr. Harshadas,

Can you please clarify your statement that "PT applicable is 200 (2500 p.a)"? Please frame your question with proper application of mind.

In Karnataka, PT is applicable for Gross Salary earned in a month of Rs. 15,000 and above. The PT rate is Rs. 200 per employee. For a Gross Salary of Rs. 12,000, no PT is applicable since it falls below the threshold limit of Rs. 14,999. PT is payable on Gross Salary earned on a per month basis.

You need to see the State Profession Tax Act. In general, the amount is decided based on the salary earned. However, the difference is so small that it is not worth getting into a dispute with the department over it.