Profession Tax in Mumbai: Should Rs 200 Be Deducted if Monthly Salary Falls Below Rs 10,000?

Before starting the discussion, I would like to inform you that I am from Maharashtra and working in Mumbai. As per Profession Tax Rules, if any employee's gross salary is more than Rs 10,000 per month, a profession tax of Rs 200 would be deducted.

Example of Salary Deduction

For example, in a particular month, if an employee has worked only a few days (assuming a gross salary of Rs 10,000 per month) and their salary for that month amounts to less than Rs 10,000, do we still have to deduct Rs 200 so that the yearly Profession Tax of Rs 2,500 is maintained?

I would appreciate it if you could shed some light on this topic as many consultants have told me that, yes, that amount should still be deducted.

In the scenario described, where an employee's salary for a particular month falls below Rs 10,000 due to working only a few days, the deduction of Rs 200 for profession tax may not be applicable. The profession tax is typically levied on employees whose gross salary exceeds Rs 10,000 per month. Therefore, if the monthly salary is below this threshold, the deduction of Rs 200 may not be required to maintain the yearly profession tax amount of Rs 2,500. It is advisable to consult with the relevant authorities or a tax expert to ensure compliance with the specific regulations in Mumbai, Maharashtra.