Understanding Professional Tax for Daily Wage Workers in Maharashtra: Are Employers Responsible for Deductions?

Professional Tax Deduction for Daily Wage Laborers in Maharashtra

In Maharashtra state, the employer is required to deduct professional tax from the wages of employees as per the prevailing rules and regulations. This tax is levied based on the income slabs set by the state government, and the employer is responsible for deducting and depositing the tax with the appropriate authorities.

For daily wage laborers in Maharashtra, the professional tax deduction will depend on their income level and the tax slab applicable to them. It is essential for employers to comply with these regulations to avoid any penalties or legal issues.

Employers should ensure that they are aware of the professional tax rates and slabs in Maharashtra state and deduct the tax accurately from the wages of daily wage laborers as required by law. Compliance with these regulations is crucial to maintaining legal and ethical standards in employment practices.

If the earnings of daily wage workers exceed the specified monthly salary limit, then you will need to deduct and remit it to the government.

It is similar to Income Tax and TDS if the total payment made to an employee exceeds the monthly prescribed salary limit. The method of payment is irrelevant. You must undergo assessment after the year, at which time the total salary/wages paid during the year will be divided according to the Professional Tax chart. You will need to display the monthly turnover of employees. Remember, the total number of employees should match your Muster Roll, including Directors. Any discrepancies should be rectified concerning their enrollment and payment of the annual fee. If they have not paid, you are obligated to deduct the amount from the Directors' Remuneration if they have been paid.

Therefore, when preparing the chart, it must align with the monthly return-cum-challan submitted to the department. Interest on Bank FD, etc., has a minimum exemption. When you place an FD, you must submit Form H/G; otherwise, the bank will calculate the annual interest accrued and commence TDS deductions. The same applies to Professional Tax deductions. In case an employee falls under deduction in one month due to full-month earnings, and in another month they do not due to lower earnings, all details must be included in the return.

For less than the minimum, Nil number of employees. The first slab is from Rs. ... to Rs. ... @ Rs. ... ===. The second slab is from Rs. ... to Rs. ... @ Rs. ... ===, and so on until reaching the maximum. Every month, the total employees should be allocated as per the slab, and it must align.