Dear All,
Greetings!
I just want to know what is PT and why are we deducting it? (Professional Tax is Rs. 150 for income between 15000/- to 19999/-, and Rs. 200 for income of 20k and above). Also, when we send it to SBI, what is the objective of PT? Additionally, what is the objective of TDS?
From India, Hyderabad
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3Greetings!
I just want to know what is PT and why are we deducting it? (Professional Tax is Rs. 150 for income between 15000/- to 19999/-, and Rs. 200 for income of 20k and above). Also, when we send it to SBI, what is the objective of PT? Additionally, what is the objective of TDS?
From India, Hyderabad
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Dear Satya,
Your question is not very clear. You are asking what the objective of PT is; simply put, it is a tax on employment. TDS, on the other hand, makes the payee responsible for deducting a certain amount and paying it to the government treasury before passing the remaining amount to the beneficiary. Additionally, the payee should issue a certificate to reflect the extent of the deduction.
Ramakant
From India, Pune
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Your question is not very clear. You are asking what the objective of PT is; simply put, it is a tax on employment. TDS, on the other hand, makes the payee responsible for deducting a certain amount and paying it to the government treasury before passing the remaining amount to the beneficiary. Additionally, the payee should issue a certificate to reflect the extent of the deduction.
Ramakant
From India, Pune
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Dear Mr. Satya,
TDS:
Tax deducted at source (TDS), as the very name implies aims at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment.
The concept of TDS requires that the person on whom responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific nature which are being made to a specified recipient. The deducted sum is required to be deposited to the credit of the Central Government. The recipient from whose income tax has been deducted at source, gets the credit of the amount deducted in his personal assessment on the basis of the certificate issued by the deductor.
PT:
Professional Tax is a Tax which is levied by State on the income earned by way of profession, trade or employement. This tax is levied based on slab rates depending on the income of the individual. Tis tax is just like income tax except for te fact that Income Tax is collected by the central Govt. and Profesiional Tax is collected by the State Govt.
Any amount paid as professional tax to the State Govt. is allowed as a deduction under Sec-16 of the Income Tax Act and Income Tax on the balance amount is levied as per the Income Tax slab rates in force.
Hope the difference shown above will clarify your queries.
Info. Source: en.wiki
Regards,
S.N.Raju.U.
From India, Hyderabad
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TDS:
Tax deducted at source (TDS), as the very name implies aims at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment.
The concept of TDS requires that the person on whom responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific nature which are being made to a specified recipient. The deducted sum is required to be deposited to the credit of the Central Government. The recipient from whose income tax has been deducted at source, gets the credit of the amount deducted in his personal assessment on the basis of the certificate issued by the deductor.
PT:
Professional Tax is a Tax which is levied by State on the income earned by way of profession, trade or employement. This tax is levied based on slab rates depending on the income of the individual. Tis tax is just like income tax except for te fact that Income Tax is collected by the central Govt. and Profesiional Tax is collected by the State Govt.
Any amount paid as professional tax to the State Govt. is allowed as a deduction under Sec-16 of the Income Tax Act and Income Tax on the balance amount is levied as per the Income Tax slab rates in force.
Hope the difference shown above will clarify your queries.
Info. Source: en.wiki
Regards,
S.N.Raju.U.
From India, Hyderabad
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PT,ESIC,TDS,FBT ,S[1][1].Tax Calculator.xls
TDS circular.pdf