P tax is deducted from the salary. For deducting the amounts slab of salary is notified by each state. Kindly check the pt slab for your state.
From India, Vadodara
Acknowledge(1)
Amend(0)
382From India, Vadodara
Acknowledge(1)Amend(0)
Understanding Professional Tax on Earnings
Professional tax is not merely based on basic salary because it is a tax on the earnings of any person who earns income, either in the form of salary or in any other form, such as fees (doctors, lawyers, etc.) or sales turnover (establishments). Therefore, if you are a salaried person, you should pay professional tax on your total earnings. The only component that you can exclude is your reimbursements.
If you get reimbursement of travel expenses met by you, that can be excluded. If you get reimbursement of rent paid by you, that can be excluded. However, all other components of salary, which are fixed, should qualify for professional tax.
If you have a component called HRA and it is not based on any condition as to whether the employee resides in their own house or not, then that shall also be considered as part of salary and professional tax paid for that component. Invariably, the professional tax shall be paid on earnings by way of bonus and incentives also.
From India, Kannur
Acknowledge(2)
Amend(0)
Professional tax is not merely based on basic salary because it is a tax on the earnings of any person who earns income, either in the form of salary or in any other form, such as fees (doctors, lawyers, etc.) or sales turnover (establishments). Therefore, if you are a salaried person, you should pay professional tax on your total earnings. The only component that you can exclude is your reimbursements.
If you get reimbursement of travel expenses met by you, that can be excluded. If you get reimbursement of rent paid by you, that can be excluded. However, all other components of salary, which are fixed, should qualify for professional tax.
If you have a component called HRA and it is not based on any condition as to whether the employee resides in their own house or not, then that shall also be considered as part of salary and professional tax paid for that component. Invariably, the professional tax shall be paid on earnings by way of bonus and incentives also.
From India, Kannur
Acknowledge(2)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls