Deduction of Profession Tax for Construction Site Workers
My question is regarding the deduction of Profession Tax for workers engaged at construction sites as civil or carpentry workers.
Firstly, should Profession Tax be deducted for newly joined workers who worked for only part of a month? For instance, if their Basic Salary was set at Rs. 12,000 but they worked for 15 days and were paid Rs. 6,000 before leaving.
Secondly, should site workers who work for only a month or two, and not for the full year, have Profession Tax deducted as well?
Kindly assist as soon as possible.
Thanks
From India, Mumbai
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My question is regarding the deduction of Profession Tax for workers engaged at construction sites as civil or carpentry workers.
Firstly, should Profession Tax be deducted for newly joined workers who worked for only part of a month? For instance, if their Basic Salary was set at Rs. 12,000 but they worked for 15 days and were paid Rs. 6,000 before leaving.
Secondly, should site workers who work for only a month or two, and not for the full year, have Profession Tax deducted as well?
Kindly assist as soon as possible.
Thanks
From India, Mumbai
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If the query is for Maharashtra state - PT applicable for employees, on 'salary', slabs are as follows: (but if they are not covered as 'employees' it's different:
Professional Tax Slab Rates in Maharashtra 2019-2020:
The Government of Maharashtra revised its professional tax slab rates for the financial year 2019-20. Mentioned below are the professional tax slab rates applicable for salaried and self-employed professionals in Maharashtra.
Monthly Gross Salary Amount Payable as Professional Tax:
- Up to Rs. 7500: Nil
- Rs. 7,501 to Rs. 10,000: Rs. 175 per month
- Above Rs. 10,000: Rs. 2,500 p.a.
The amount can be paid in the following manner: Rs. 200 per month except for the month of February. Rs. 300 for the month of February.
The State Government of Maharashtra also implemented a special privilege for women professionals: As per the provision, women employees who earn up to Rs. 10,000 p.m. will not be required to pay professional tax on their salary. This exemption was put into effect in the financial year 2015-2016.
Further, there's no difference between new or existing employees. If they are employed part of the month, above slabs may apply.
Read here for more: https://www.bcasonline.org/Reference...n_tax_act.html
From India, Bangalore
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1159Professional Tax Slab Rates in Maharashtra 2019-2020:
The Government of Maharashtra revised its professional tax slab rates for the financial year 2019-20. Mentioned below are the professional tax slab rates applicable for salaried and self-employed professionals in Maharashtra.
Monthly Gross Salary Amount Payable as Professional Tax:
- Up to Rs. 7500: Nil
- Rs. 7,501 to Rs. 10,000: Rs. 175 per month
- Above Rs. 10,000: Rs. 2,500 p.a.
The amount can be paid in the following manner: Rs. 200 per month except for the month of February. Rs. 300 for the month of February.
The State Government of Maharashtra also implemented a special privilege for women professionals: As per the provision, women employees who earn up to Rs. 10,000 p.m. will not be required to pay professional tax on their salary. This exemption was put into effect in the financial year 2015-2016.
Further, there's no difference between new or existing employees. If they are employed part of the month, above slabs may apply.
Read here for more: https://www.bcasonline.org/Reference...n_tax_act.html
From India, Bangalore
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It seems you are from Mumbai, Maharashtra. Specific answers to your queries are as follows:
1. PT is deducted on Gross Earnings and not on Gross Decided. Gross earnings are Rs. 6,000/-. Therefore, there is no tax as per the slabs provided above by our learned member, Prof. Kumar, in response to your query.
2. Tax is to be deducted on monthly earnings as per the slabs given above, regardless of whether the employee works for the entire year or not.
I would like to inquire about what you have been doing up until now. This is basic information in Salary and Wage Administration.
From India, Mumbai
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1. PT is deducted on Gross Earnings and not on Gross Decided. Gross earnings are Rs. 6,000/-. Therefore, there is no tax as per the slabs provided above by our learned member, Prof. Kumar, in response to your query.
2. Tax is to be deducted on monthly earnings as per the slabs given above, regardless of whether the employee works for the entire year or not.
I would like to inquire about what you have been doing up until now. This is basic information in Salary and Wage Administration.
From India, Mumbai
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Maharashtra Profession Tax Ammendment 2014 010714-1.pdf
Profession Tax.doc