I have a doubt whether the professional tax is deductible based on the rate of salary or the earnings of that month. For example, if the rate of salary is Rs 6000/- but the earnings for that month are Rs 4800/-, I am unsure if the professional tax is applicable or not.
Regards,
Yvrao
From India, Mumbai
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Regards,
Yvrao
From India, Mumbai
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Professional Tax Calculation
Professional tax will depend on the net salary. For example, for Rs. 10,000, only Rs. 80 needs to be deducted. If the salary is Rs. 15,000, professional tax should be deducted based on that slab.
Thanks & Regards,
Vani
From India, Secunderabad
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29Professional tax will depend on the net salary. For example, for Rs. 10,000, only Rs. 80 needs to be deducted. If the salary is Rs. 15,000, professional tax should be deducted based on that slab.
Thanks & Regards,
Vani
From India, Secunderabad
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Dear Mr. Rao,
I have pasted details relating to Profession Tax applicable to Chennai. In this, it states that the Gross Half-Yearly income needs to be considered.
The Profession Tax assessment and collection come under the provision of tax on professions, trades, calling & employments, under the Tamil Nadu Municipal Laws (Second Amendment) Act 1998. Profession Tax is a higher source of income next to Property Tax. The Profession Tax assessment is calculated based on the Half-Yearly gross income for the following categories:
- Individuals
- Private Establishments
- Salaried People (Central and State Govt.)
- Company
Every Company that transacts business and every person who is engaged actively or otherwise in any Profession, Trade, Calling, and Employment within the Chennai Corporation city limits has to pay half-yearly Profession Tax, as per Section 138C of the Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998. The tax rates are given below in the table in Form-2. For the assessment of Profession Tax, one has to make an application for registration. The Corporation of Chennai will assign a permanent number in the style of PTNAN.
Based on the gross income declared, the Half-Yearly Profession Tax will be calculated as per the Table given below:
Sl.No. | Average Half-Yearly Income | From | To | Half-Yearly Profession Tax
1 | Up to Rs.21,000/- | NIL
2 | Rs.21,001/- to Rs.30,000/- | Rs.100/-
3 | Rs.30,001/- to Rs.45,000/- | Rs.235/-
4 | Rs.45,001/- to Rs.60,000/- | Rs.510/-
5 | Rs.60,001/- to Rs.75,000/- | Rs.760/-
6 | Rs.75,001/- and above | Rs.1095/-
Company Tax
The assessment and collection of Company Tax come under the Provisions of tax Section 110 and Schedule IV of the C.C.M.C. Act 1919.
If the Council, by a resolution, determines that a tax on companies shall be levied, every company which, after the date specified in the notice published under sub-section(2) of Section 98-A, transacts business within the city for any half-year not less than sixty days with aggregate shall pay, in addition to any license fee that may be leviable under this Act, a half-yearly tax assessed in accordance with the rules of Schedule-IV, but in no case exceeding rupees one thousand.
Assessment of Companies (See Section 110)
Companies shall be assessed by the Commissioner on the following scale:
Paid-up capital (Lakhs of rupees) | Half-Yearly Tax (Rs.)
A. Less than one | Rs.100/-
B. One and more than one, but less than two | Rs.200/-
C. Two and more than two, but less than three | Rs.300/-
D. Three and more than three, but less than five | Rs.400/-
E. Five and more than five, but less than ten | Rs.500/-
F. Ten and above | Rs.1000/-
Provided that any company, the head or a principal office of which is not in the city and which shows that its gross income received in or from the city in the year immediately preceding the year of taxation:
(a) has not exceeded Rs.5,000 shall pay only 25 rupees per half-year.
(b) has exceeded Rs.5,000 but has not exceeded Rs.10,000 shall pay only 50 rupees per half-year.
(c) has exceeded Rs.10,000 but and has not exceeded Rs.20,000 shall pay only 100 rupees per half-year.
(d) has exceeded Rs.20,000 shall pay per half-year 100 rupees together with a sum calculated at the rate of 25 rupees per half-year for every 5000 rupees or part thereof of gross income in excess of Rs.20,000 subject to a maximum half-yearly tax of 1,000 rupees.
Provided further that when a company, the head or a principal office of which is not in the city becomes liable to tax for the first time, it shall pay in the first year a tax of 25 rupees; but if the gross income of the company during such year is subsequently found to have exceeded 5,000 rupees, it shall pay the tax calculated in accordance with the above-mentioned scale less the initial payment of 25 rupees.
In the event you have any doubts, I suggest you obtain a copy of the Act relating to Profession Tax, which will be available in bookstores publishing statutory books.
M.V.KANNAN
From India, Madras
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I have pasted details relating to Profession Tax applicable to Chennai. In this, it states that the Gross Half-Yearly income needs to be considered.
The Profession Tax assessment and collection come under the provision of tax on professions, trades, calling & employments, under the Tamil Nadu Municipal Laws (Second Amendment) Act 1998. Profession Tax is a higher source of income next to Property Tax. The Profession Tax assessment is calculated based on the Half-Yearly gross income for the following categories:
- Individuals
- Private Establishments
- Salaried People (Central and State Govt.)
- Company
Every Company that transacts business and every person who is engaged actively or otherwise in any Profession, Trade, Calling, and Employment within the Chennai Corporation city limits has to pay half-yearly Profession Tax, as per Section 138C of the Tamil Nadu Municipal Laws Second Amendment Act 59 of 1998. The tax rates are given below in the table in Form-2. For the assessment of Profession Tax, one has to make an application for registration. The Corporation of Chennai will assign a permanent number in the style of PTNAN.
Based on the gross income declared, the Half-Yearly Profession Tax will be calculated as per the Table given below:
Sl.No. | Average Half-Yearly Income | From | To | Half-Yearly Profession Tax
1 | Up to Rs.21,000/- | NIL
2 | Rs.21,001/- to Rs.30,000/- | Rs.100/-
3 | Rs.30,001/- to Rs.45,000/- | Rs.235/-
4 | Rs.45,001/- to Rs.60,000/- | Rs.510/-
5 | Rs.60,001/- to Rs.75,000/- | Rs.760/-
6 | Rs.75,001/- and above | Rs.1095/-
Company Tax
The assessment and collection of Company Tax come under the Provisions of tax Section 110 and Schedule IV of the C.C.M.C. Act 1919.
If the Council, by a resolution, determines that a tax on companies shall be levied, every company which, after the date specified in the notice published under sub-section(2) of Section 98-A, transacts business within the city for any half-year not less than sixty days with aggregate shall pay, in addition to any license fee that may be leviable under this Act, a half-yearly tax assessed in accordance with the rules of Schedule-IV, but in no case exceeding rupees one thousand.
Assessment of Companies (See Section 110)
Companies shall be assessed by the Commissioner on the following scale:
Paid-up capital (Lakhs of rupees) | Half-Yearly Tax (Rs.)
A. Less than one | Rs.100/-
B. One and more than one, but less than two | Rs.200/-
C. Two and more than two, but less than three | Rs.300/-
D. Three and more than three, but less than five | Rs.400/-
E. Five and more than five, but less than ten | Rs.500/-
F. Ten and above | Rs.1000/-
Provided that any company, the head or a principal office of which is not in the city and which shows that its gross income received in or from the city in the year immediately preceding the year of taxation:
(a) has not exceeded Rs.5,000 shall pay only 25 rupees per half-year.
(b) has exceeded Rs.5,000 but has not exceeded Rs.10,000 shall pay only 50 rupees per half-year.
(c) has exceeded Rs.10,000 but and has not exceeded Rs.20,000 shall pay only 100 rupees per half-year.
(d) has exceeded Rs.20,000 shall pay per half-year 100 rupees together with a sum calculated at the rate of 25 rupees per half-year for every 5000 rupees or part thereof of gross income in excess of Rs.20,000 subject to a maximum half-yearly tax of 1,000 rupees.
Provided further that when a company, the head or a principal office of which is not in the city becomes liable to tax for the first time, it shall pay in the first year a tax of 25 rupees; but if the gross income of the company during such year is subsequently found to have exceeded 5,000 rupees, it shall pay the tax calculated in accordance with the above-mentioned scale less the initial payment of 25 rupees.
In the event you have any doubts, I suggest you obtain a copy of the Act relating to Profession Tax, which will be available in bookstores publishing statutory books.
M.V.KANNAN
From India, Madras
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Dear All,
We are a company based in Maharashtra and we have a branch office in Jharkhand. We have obtained an ESIC SUB-CODE in Jharkhand. The salaries are generated from Maharashtra. Do we have to deduct Professional tax for these employees, and if so, should we consider the slab as per Maharashtra or Jharkhand? If it's Jharkhand, could someone please provide the Professional Tax Slab for Jharkhand?
Thanks,
From India, Mumbai
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We are a company based in Maharashtra and we have a branch office in Jharkhand. We have obtained an ESIC SUB-CODE in Jharkhand. The salaries are generated from Maharashtra. Do we have to deduct Professional tax for these employees, and if so, should we consider the slab as per Maharashtra or Jharkhand? If it's Jharkhand, could someone please provide the Professional Tax Slab for Jharkhand?
Thanks,
From India, Mumbai
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Prof Tax is payable on the net salary drawm only but not on the rate of salary or gross salary. regards sanagapalli
From India, Hyderabad
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From India, Hyderabad
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Dear Grettapl,
ESI and Profession Tax are two different statutes. For your information, Profession Tax is a source of revenue for the local Municipality/Corporation. ESI is a Central act and is payable for benefits extended.
To answer your query, you are required to deduct Profession Tax in the respective place where the employees are working, in your case, Jharkhand.
M.V. Kannan
From India, Madras
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ESI and Profession Tax are two different statutes. For your information, Profession Tax is a source of revenue for the local Municipality/Corporation. ESI is a Central act and is payable for benefits extended.
To answer your query, you are required to deduct Profession Tax in the respective place where the employees are working, in your case, Jharkhand.
M.V. Kannan
From India, Madras
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