Understanding Professional Tax Calculation for Employees and Employers - CiteHR

Dear All,

Ours is a security company. We appoint guards for contracts. Guards should work for 26 or more days. We would like to deduct Professional Tax every month. Our question is whether we should pay professional tax for 26 days of work or include overtime days.

Thanks in advance.

Saavi

From India, Kurnool
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Hi Saavi,

Professional tax calculation

Professional tax is typically calculated based on the gross income earned each month. When an employee's income surpasses a certain tax bracket, they are obligated to pay professional tax.

Professional tax rates in Andhra Pradesh

In Andhra Pradesh, if an employee's monthly salary exceeds Rs. 15,000, they are required to pay Rs. 150 per month as professional tax. Similarly, if it exceeds Rs. 20,000, the professional tax amount increases to Rs. 200 per month. This tax calculation isn't linked to the number of working days in a month.

From India, Bangalore
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