Professional TAX

Ask the Community Statutory Compliance
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What is PT and how to calculate it?

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Hey. (PT )Professional Tax is a state tax, imposed by a state government on account of the infrastructure it provides to you so that you can carry out your profession in that state. In a way, it is much like a toll bridge; if you use the facility, you must pay a token amount.

The amount of Professional Tax is calculated on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

Regards

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Thanks, @Shweta & congrats on your ‘First Post’

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Hi Sahira,

The respective state governments in India levy the professional tax on income from profession or employment. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government. In case of other class of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one state to another, but it has a maximum limit of INR 2500/- per year.

Please look into below link for more information on profession tax slab of India.

https://knowledge.greythr.com/display/GOIN/Profession+Tax+Slabs+India

Regards,
Chethan

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Hi Sahira,

Professional tax is a tax that is levied by the state government and applies to income you earn through employment. You can often find the deduction for the same on your salary slip each month. Professional tax one source of revenue for the government and is used towards bettering the services for professionals in that state. Thus, it is essential for every employer to deduct professional tax on salary, although there are a few exemptions related to this. Professional tax in India varies from state to state. The maximum amount of professional tax cannot exceed Rs.2,500 annually.

To calculate PT,

1.First, an individual must check if professional tax is applicable in their state.
2.In case it is applicable, employees must check the different tax slabs under their state regulative.
3.The tax slabs are only applicable to individuals earning above a certain amount, as defined by the state regulative. Additionally, there are different professional tax slabs for different income groups.
4.This tax is exempt from the income tax. In effect, employees can cite the salary amount for income tax after deducting the professional tax amount.
5.The professional tax on salary is deducted directly by employers on behalf of employees and submitted to the relevant state government. This saves any hassle for the employees.

Please find the below link to know more about PT and state wise PT slabs.

https://knowledge.greythr.com/display/GOIN/Profession+Tax+Slabs+India

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PT is the monthly tax deducted from each employee. It’s 200/- monthly and 2500 yearly. For feb., it’s 300/-
Please help on PT payment, where to make it’s payment online?

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Thanks @admin1Aprajitha.

Congratulations on your ‘First Post’ keep posting to earn badges and rewards :slight_smile:

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Please note that the Profession Tax ( not Professional Tax) is state subject and particularly the Profession Tax is a income of a particular Municipal Corporation where the employee is drawing salary. The State Government decides on how much to be deducted from the Employee and at the same time it can not exceed the limit prescribed set by the Central Government.

As of now, the maximum deduction in a year can not exceed Rs.2500/- across India.

It is important to note that except 3 States ( as far as my knowledge goes) all the State Government expect the employer to deduct the Profession Tax based on the salary drawn by an employees in a particular month. However, few State Government viz. Tamil Nadu, Kerala etc. the Profession Tax deduction happen once in a six month based on the employees’ salary income.

The Profession Tax applicable for all the monthly income being paid to an employee except on the Statutory Bonus as per Bonus Act.

I will share some interesting points with you on the deduction of Profession Tax in my next post.

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Thanks @Sampath

Congrats on your First Post! Keep posting and earn exciting rewards :slight_smile:

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How PT deducted if employees are in Bangalore branch. Company is registered in other state.

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Hi Aprajita,

For the branch in Bangalore, the PT has to be deducted as per the PT Act of Karnataka.

Every branch of a Company, Corporation, Firm, or other Corporate Body, Society, Club or Association is treated as separate person for the purpose of Professional Tax Computation.

Please visit this link https://pt.kar.nic.in/ - wherein you have the guidelines clearly prescribed.

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Dear All,

I need to understand when are the returns of Professional Tax filed in Jharkhand , apart from Yearly is it also done quarterly .
It will be great if anyone can provide me any connection for PT registration in Jharkhand as we have opened few branches their .

Thanks
Richa

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Hi @Richa

Sharing one of our blog which is most appreciated by others for your knowledge in this area.

In-terms of connects as of now I do not have any - but if any other member has any connect please help @Richa

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Thank you Dinesh ,

This blog and links are very helpfull :slight_smile:

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Here is the latest PT slab of Jharkhand.

The state portal http://jharkhandcomtax.gov.in/ also guides how to furnish registration. Interestingly you can do online payment of PT as well.

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