Can you tell me if the profession tax is applicable for basic or gross salary? We are considering whether profession tax on basic salary is correct or incorrect.
Furthermore, my salary structure is as follows:
- Basic
- House Rent Allowances
- Medical Allowances
- Seniority Allowances
- City Compensatory Allowances
Are the above allowances applicable for profession tax? Please explain to me according to income tax rules.
I am awaiting your reply.
Thanks,
From India, Pune
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1Furthermore, my salary structure is as follows:
- Basic
- House Rent Allowances
- Medical Allowances
- Seniority Allowances
- City Compensatory Allowances
Are the above allowances applicable for profession tax? Please explain to me according to income tax rules.
I am awaiting your reply.
Thanks,
From India, Pune
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Dear Dilip,
Professional tax is always state-specific, and the definition of salary or wages may vary from state to state. On a general basis, the definition includes pay, dearness allowance, and all other remunerations, including allowances received by any person on a regular basis, whether payable in cash or kind. It also encompasses perquisites and profits in lieu of salary as defined in Section 17 of the Income Tax Act, 1961 (No. 43 of 1961), but excludes bonus in any form and on any account, gratuity, and pension.
Based on this, all the components of the salary structure defined by you are paid to the employees on a regular basis. Therefore, professional tax shall be levied on the gross salary and not just on the Basic.
I hope your query is clear. Please revert for any clarification.
Adv. Naveen Bhardwaj
9871158855
From India, Delhi
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Professional tax is always state-specific, and the definition of salary or wages may vary from state to state. On a general basis, the definition includes pay, dearness allowance, and all other remunerations, including allowances received by any person on a regular basis, whether payable in cash or kind. It also encompasses perquisites and profits in lieu of salary as defined in Section 17 of the Income Tax Act, 1961 (No. 43 of 1961), but excludes bonus in any form and on any account, gratuity, and pension.
Based on this, all the components of the salary structure defined by you are paid to the employees on a regular basis. Therefore, professional tax shall be levied on the gross salary and not just on the Basic.
I hope your query is clear. Please revert for any clarification.
Adv. Naveen Bhardwaj
9871158855
From India, Delhi
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Professional tax depends on state & the slab of wages. The wages in PF includes all salary components. regards Amit
From India, New Delhi
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From India, New Delhi
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Professional tax is levied on gross salary, not on basic salary. The new slab is as follows: PT is Rs.150 for gross salary of Rs.10,000 & above and Rs.200 for Rs.15,000 and above. The professional tax rates vary depending on the states.
Regards, Satish
From India, Bangalore
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Regards, Satish
From India, Bangalore
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Hi, Can anyone please explain that why salary split-up is done Eg: Basic House Rent Allowances Medical Allowances DA What is the benefit of having salary structure. Thanks & Regards cgnanij
From India, Madras
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From India, Madras
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can i know at a present profession tax ? profession tax and I T TAX DIFFRENCE? WHAT IS T.D.S ........... WHAT IS METHODS?
From India, Bangalore
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From India, Bangalore
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Dear All,
Can you all help me out with this problem? Actually, I have no idea regarding TDS deduction on salary. Please tell me how it is applicable according to the slab wise or state wise, and also explain the method.
Thank you.
From India, Mohali
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Can you all help me out with this problem? Actually, I have no idea regarding TDS deduction on salary. Please tell me how it is applicable according to the slab wise or state wise, and also explain the method.
Thank you.
From India, Mohali
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Hi all,
I have a query. I am working with a CA firm in Gujarat, and they pay salaries by cheques to the employees. Currently, there are no deductions from the salary for the approximately 20 employees. I would like to know the details of the following:
1. There is no salary structure like basic, HRA, DA, PF, etc. Is it important to have a structure and deduct PF? If not done, could there be any legal actions or difficulties?
2. No professional tax is being paid. Is it compulsory to pay, and if yes, how should I start?
3. Does having a proper salary structure help employees save on income tax?
Please reply. I am confused and cannot find the right direction.
Regards,
Kirty
From India, Mumbai
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I have a query. I am working with a CA firm in Gujarat, and they pay salaries by cheques to the employees. Currently, there are no deductions from the salary for the approximately 20 employees. I would like to know the details of the following:
1. There is no salary structure like basic, HRA, DA, PF, etc. Is it important to have a structure and deduct PF? If not done, could there be any legal actions or difficulties?
2. No professional tax is being paid. Is it compulsory to pay, and if yes, how should I start?
3. Does having a proper salary structure help employees save on income tax?
Please reply. I am confused and cannot find the right direction.
Regards,
Kirty
From India, Mumbai
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Dear all, Please let me know , What is criteria of ESIC deduction & components are include in earning salary . Regards Sandeep Kumar
From India, Mohali
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From India, Mohali
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SALARY CALCULATOR & INCOME TAX.zip
EMPLOYEE SALARY INCOME TAX CALCULATION.xls x