Confused About Professional Tax Deduction: Is It Based on Fixed or Earned Gross Salary?

Hi everyone, I am working as an HR Manager in a company in Gujarat. In Gujarat, the professional tax slab is zero until Rs. 11,999, and for Rs. 12,000 and above, Rs. 200 will be deducted from the gross salary.

Question on Professional Tax Deduction

Now, my question is, on which salary will the deduction be made - the fixed gross or the earned gross? For example, if my monthly gross salary is Rs. 40,000, Rs. 200 should be deducted. However, if my salary is Rs. 40,000, but I was only present for 5 days in a particular month, resulting in an earned gross salary of Rs. 6,667, will Rs. 200 still be deducted?

Please clarify.

Profession tax is a tax on income from a profession. If you have earned nothing or only Rs 6,667, then pay tax according to that slab. If your state's slab is up to Rs 11,999 with no tax to be paid, then don't pay any tax for the period you had earned Rs 6,667 as income or salary. In the next month, if you earned Rs 12,000, then for that month, pay Rs 200.

Professional Tax Slab Limit

How much amount from the basic salary should be mentioned per year/month for the professional tax slab limit? For example, for Basic + DA of Rs. 12,000, how much is the professional tax? And for Basic + DA of Rs. 18,000, how much is the professional tax?

Your question is not clear. If you want to know what the profession tax payable would be if the gross salary is Rs. 18,000 per month, the amount of tax would depend upon the state rules. You can find out the slabs and the amount of tax payable from your nearest local self-government, municipal, or Panchayat office.