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Hello, Everyone,

Please help me out to get this confusion solved. It's about Professional Tax Deduction. Is Ptax deducted on Stipend?

We have a few Trainees in our organization who are getting a stipend. Kindly reply if Ptax is deductible. If so, kindly confirm the rate. We are based out of West Bengal and under the shop & establishment Act (WB).

Waiting for your valuable reply.

Thanks and Regards, Sangeeta Kolkata

From India, Calcutta
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Dear Sangeeta,

As per the Tamil Nadu Tax on Professions, Trades, Callings, and Employments Act 1992, an "Employee" means a person employed on salary and includes:

1) a Government servant receiving pay from the revenue of the Central Government or any State Government;
2) a person in the service of a body, whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where such a body operates within the municipal limit even though its headquarters may be outside the municipal limit; and
3) a person engaged in any employment by an employer not covered by sub-clauses (i) and (ii).

As per the definition, it should be understood that trainees also come under the jurisdiction and are liable to be taxed. For the rates, please check the website - [Welcome to Corporation of Chennai](http://www.chennaicorporation.gov.in/online-civic-services/professionTaxCalculator.htm).

Regards,

Arun

From India, Kochi
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We do not deduct any amount from stipend. No PF nor Professional tax. A fixed amount everymonth is paid as stipend. Only their leaves (if LOP) are deducted.
From India, Bangalore
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Dear All,

Thank you for your reply. I need one more help from members. Kindly let me know, how the P Tax is deducted if an employee has worked for only 20 days. Is the deduction on the full salary amount or only the amount earned by the employee.

Kindly reply.

Thanks,
Sangeeta

From India, Calcutta
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PT should be deducted only on the Wages/ Salary earned Worked Days are not relevant for computation of PT deduction.
From India, Pune
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