Confused About PT Calculation: Gross Salary vs. Earnings with LOP – Can You Help?

Hi everyone,

I have a doubt regarding PT. If the person's salary is more than 15000 and they have a loss of pay (LOP) of 15 days leave, their earnings will be only 7500. I need clarification on whether PT should be calculated based only on the gross salary even when the person is on LOP, or if it should be calculated based on their earnings with LOP included.

Kindly clarify.

PT is calculated on earnings. In the example given by you, PT should be calculated on 7500 and not 15000.

Regards,
Manish

Hi Manish,

For example, I have joined a company on the 5th of August, and my gross is 24,000 with a take-home pay of 19,003. Am I applicable for tax in September, or am I not applicable because my income is less than 21,000, right? Please provide me with clarification.

Thank you.

In the data provided by you, your PT will be deducted from the gross salary for the total payable days and not for your overall days. However, the take-home salary will be calculated after all deductions. This means once your gross salary is determined based on the total number of payable days, statutory deductions will be made, resulting in your final take-home salary.

Regards,
Manish

Professional Tax is calculated based on the Gross Earnings of the said month and not the take-home salary. If the Gross salary is 15K and the employee was on Loss of Pay (LOP), the Gross earnings of that employee for that particular month will be 7.5k, and accordingly, the PT will be deducted.

Can we get any documentary evidence, such as the Government Gazette, on the same? Please share if any of you have the same as it is requested by one of our clients.