Payroll Dilemma: Should PT Deductions Be Monthly or Half-Yearly?

Is a monthly deduction for PT best, or should it be done half-yearly?

Monthly Deduction for PT

PT is based on monthly payouts, so it is deducted and paid to the state government monthly.

It would be a better practice to deduct PT monthly from the employee's salary. Remittance to the state government will be based on your state. Which state do you belong to? Does your state allow monthly PT remittance?

If in your state PT is to be deposited half-yearly, the consolidated PT deducted from the monthly salary will be deposited.

As our seniors suggested, PT is a monthly payout as per state government rules. I didn't find any half-yearly and annual payments except for Managing Partners. So, the best thing to do is to deduct it on a monthly basis as per state government policy.

Hi Nandini, I think you're from TN, if that's correct. As our seniors suggested, PT is a monthly payout as per TN state government rules. I didn't find any half-yearly and annual payments except for Managing Partners. So, the best thing to do is to deduct on a monthly basis as per state government policy as shown below:

Monthly salary and tax deductions

Monthly salary (in Rs.) Tax (in Rs. Per month)
Up to Rs.3,500 - Nil
Rs.3,501 to Rs.5,000 - Rs.22.5
Rs.5,001 to Rs.7,500 - Rs.52.5
Rs.7,501 to Rs.10,000 - Rs.115
Rs.10,001 to Rs.12,500 - Rs.171
Above Rs.12,500 - Rs.208

Please review and let me know if you need any further clarification.

PT has to be deducted and paid monthly. However, in the case of PT returns, if your annual deduction of PT exceeds 50,000 rupees, you need to file a monthly PT return. If your annual deduction of PT is below 50,000 rupees, then a yearly PT return is sufficient.

Regards, Arun

In Tamil Nadu, PT is deducted half-yearly from the salaries.

Depends on state rules. For Tamil Nadu, except Chennai Corporation, for other regions, it is half-yearly. This state-wise information may help you. https://knowledge.greythr.com/displa...ax+Slabs+India

Profession Tax Payment Frequency

Profession tax is due monthly, half-yearly, etc. In Tamil Nadu, where I come from, it is payable half-yearly. In my view, it is better to collect it monthly so employees don't feel the pinch.

Regards, Aswath Hari