Dear Seniors,
I have one query that needs to be resolved as soon as possible. Please help me in getting out of this. One of our employees is on a contract, and she went on maternity leave for 3 months. We are not covered under ESI coverage and have less than 10 employees, but still, management has given Rs 5000 as medical benefit. Since she is absent for all these 3 months, she doesn't receive any kind of pay other than Rs 5000.
My question is: Is her monthly payment subject to Professional Tax deduction or not?
From India, Hyderabad
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70I have one query that needs to be resolved as soon as possible. Please help me in getting out of this. One of our employees is on a contract, and she went on maternity leave for 3 months. We are not covered under ESI coverage and have less than 10 employees, but still, management has given Rs 5000 as medical benefit. Since she is absent for all these 3 months, she doesn't receive any kind of pay other than Rs 5000.
My question is: Is her monthly payment subject to Professional Tax deduction or not?
From India, Hyderabad
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I also want to know if the PT is like this. For Rs 5000 - 6000, it is Rs 60. For Rs 6000 - 7500, it is Rs 80.
Then, if an employee works for the whole month and gets 7500, Rs 80 should be deducted as PT. But what if he is not present for some days and his salary is 5500, how much PT should be deducted? Is it Rs 60 or Rs 80?
From India, Hyderabad
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Then, if an employee works for the whole month and gets 7500, Rs 80 should be deducted as PT. But what if he is not present for some days and his salary is 5500, how much PT should be deducted? Is it Rs 60 or Rs 80?
From India, Hyderabad
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Please excuse me for the second question as Professional Tax would be deducted on Gross Pay and Gross pay would be before any deductions so an employee, even if he is absent, then also his PT will be calculated on 7500.
Now please answer my 1st question.
From India, Hyderabad
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Now please answer my 1st question.
From India, Hyderabad
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Dear Bha, If the person falls in the tax bracket ,definitely you have pay the PT. Regards Carmel
From India, Mumbai
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From India, Mumbai
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Thank you, Carmel. She falls under the tax bracket because she receives 11000 PM. However, as she is on maternity leave, she will not receive any pay due to loss of pay for the whole month. Instead, she is paid 5000 as a medical benefit. Now, which pay should we consider, 5000 or 11000?
From India, Hyderabad
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From India, Hyderabad
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Hi Bhandhavi, Please confirm if the Medical Benefit of 5000/- is a part of the Gross Salary of 11000/-? In such case the P tax would be deducted as per the slab of 11,000/-. Thanks, Sangeeta
From India, Calcutta
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From India, Calcutta
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Hi atoz no it is not a part of gross salary. It is the benefit which is given to her on management wish it is not as per rule..........
From India, Hyderabad
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From India, Hyderabad
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Hi Yadav,
Thank you, but in my opinion, medical benefits are offered out of gratitude and are not related to her salary. Her salary is $11,000, and since she was not present for the whole month, the entire amount is being deducted due to Loss of Pay (LOP). Professional Tax (PT) is calculated on the gross amount before deductions, so PT should be deducted, right? Please correct me if I am wrong.
From India, Hyderabad
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Thank you, but in my opinion, medical benefits are offered out of gratitude and are not related to her salary. Her salary is $11,000, and since she was not present for the whole month, the entire amount is being deducted due to Loss of Pay (LOP). Professional Tax (PT) is calculated on the gross amount before deductions, so PT should be deducted, right? Please correct me if I am wrong.
From India, Hyderabad
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hi sir this is B.A.Raju i am working as HR executive in manfacturing industry i want to goto software industry can i go there if i could go what stratagies vl follow please give me some guidlines.
From India, Bangalore
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From India, Bangalore
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As per Income Tax section 194J, payment of professional charges to resident assesses is taxable. If you are paying any professional fees, it should be taxed at 10% if the total professional fee for the entire year exceeds Rs. 30,000.
For example:
1. Professional fee from Rs. 0 to 30,000 per annum incurs no professional tax.
2. If the professional fee exceeds Rs. 30,000, then professional tax is applicable at 10% on the amount exceeding Rs. 30,000.
I hope this explanation is clear to everyone. If I am mistaken, please feel free to correct me.
From India, Pondicherry
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For example:
1. Professional fee from Rs. 0 to 30,000 per annum incurs no professional tax.
2. If the professional fee exceeds Rs. 30,000, then professional tax is applicable at 10% on the amount exceeding Rs. 30,000.
I hope this explanation is clear to everyone. If I am mistaken, please feel free to correct me.
From India, Pondicherry
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