An employee has been on unauthorised absence for 3 months. He has rejoined duty and is facing the disciplinary proceedings now. While calculating Professional tax for 6 months, should I include or exclude the non-salary period? if the actual salary drawn by him is taken, slab rate changes and tax amount to be levied falls down one slab rate. Kindly advice.
From India, Kochi
From India, Kochi
Hi,
Professional tax is levied based on the earned income of the employee.
If employee was on unauthorized leave for 3 months and if it is leave without pay then there is no question of considering nil salary for the purpose of professional tax calculation.
From India, Madras
942Professional tax is levied based on the earned income of the employee.
If employee was on unauthorized leave for 3 months and if it is leave without pay then there is no question of considering nil salary for the purpose of professional tax calculation.
From India, Madras
If the query is related to legal position in Kerala, pl.take note of these features -
All salaried individuals are liable to pay professional tax in Kerala. If you reside in any of the municipal areas in Kerala, as per the Kerala Municipality Act 1994, professional tax is levied on every individual's income, including lawyers, Chartered Accountants, entrepreneurs, etc. However, the amount of tax payable varies depending on your income slab as set by the state government. According to the Income Tax Act 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction.
Kerala Professional Tax Act
Professional tax came into being in 1996 with the enforcement of the Kerala State Tax on Professions, Trades, Callings, and Employment Act, commonly known as the Kerala Professional Tax Act. The Kerala Municipality Amendment Act of 2015 mandates that employees earning a half-yearly salary of more than Rs 12,000 are liable to pay professional tax.
Professional Tax Applicability in Kerala
> Companies operating their businesses in a municipal area in Kerala for sixty days and above are liable to pay professional tax.
> Any establishment, firm, shops or company outside the municipal area with its head office operating from the municipal area for more than sixty days needs to pay professional tax.
> Owners who have resided within the municipal area for more than sixty years are liable to pay professional tax regardless of the location.
> Individuals holding employment/appointments, exercising calling or art, professions, and transacting business within the municipal area for more than sixty days must pay PT.
> If any one or body earning from investments in a municipal area besides residing, you are liable to pay the PT.
Professional Tax Slab Rate in Kerala
Half-Yearly Income Slab
Up to Rs 11,999 - NIL/Not Applicable
Rs 12,000 to Rs 17,999 - Rs.120
Rs 18,000 to Rs 29,999 - Rs.180
Rs 30,000 to Rs.44,999 - Rs.300
Rs 45,000 to Rs 59,999 - Rs.450
Rs 60,000 to Rs 74,999 - Rs.600
Rs 75,000 to Rs 99,999 - Rs.750
Rs 1,00,000 to 1,24,999 -Rs 1,000
Rs 1,25,000 and above Rs 1,250
Professional Tax can be remitted online payment for five corporations only which include Thrissur, Thiruvananthapuram, Kannur, Kozhikode and Kollam.
Professional Tax Payment Due Date - PT liable to be paid half yearly; the first half being April to September and the second half being October to March. For the first half, you should pay the tax by the 31st of August, and for the second half, by the 28th of February.
Late Payment Penalty - you need to pay the professional tax within the said dates. Any delay in payment will attract a penalty of 1% and for non-payment, the penalty amount can be as high as Rs 5,000.
Professional Tax Exemption - As per the Kerala professional tax rule, some individuals are eligible for exemption on professional tax, they are - Textile industry ‘Badli’ workers; any mentally or permanently disabled child’s or individual’s parents
Members of the Navy, Air Force, and Army (according to the Navy Act of 1957, Air Force Act of 1950, and Army Act of 1950); Individuals with permanent physical disabilities; Senior citizens above 65 years of age; Auxiliary force or reservist members serving in Kerala. Agents of the Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings
According to the Income Tax Act 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction. Pl.check the latest amendment if any to the above features.
However, if there is no pay there need no deduction of PT. If there's part salary you may have to apply the slab rates published by the govt.
From India, Bangalore
All salaried individuals are liable to pay professional tax in Kerala. If you reside in any of the municipal areas in Kerala, as per the Kerala Municipality Act 1994, professional tax is levied on every individual's income, including lawyers, Chartered Accountants, entrepreneurs, etc. However, the amount of tax payable varies depending on your income slab as set by the state government. According to the Income Tax Act 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction.
Kerala Professional Tax Act
Professional tax came into being in 1996 with the enforcement of the Kerala State Tax on Professions, Trades, Callings, and Employment Act, commonly known as the Kerala Professional Tax Act. The Kerala Municipality Amendment Act of 2015 mandates that employees earning a half-yearly salary of more than Rs 12,000 are liable to pay professional tax.
Professional Tax Applicability in Kerala
> Companies operating their businesses in a municipal area in Kerala for sixty days and above are liable to pay professional tax.
> Any establishment, firm, shops or company outside the municipal area with its head office operating from the municipal area for more than sixty days needs to pay professional tax.
> Owners who have resided within the municipal area for more than sixty years are liable to pay professional tax regardless of the location.
> Individuals holding employment/appointments, exercising calling or art, professions, and transacting business within the municipal area for more than sixty days must pay PT.
> If any one or body earning from investments in a municipal area besides residing, you are liable to pay the PT.
Professional Tax Slab Rate in Kerala
Half-Yearly Income Slab
Up to Rs 11,999 - NIL/Not Applicable
Rs 12,000 to Rs 17,999 - Rs.120
Rs 18,000 to Rs 29,999 - Rs.180
Rs 30,000 to Rs.44,999 - Rs.300
Rs 45,000 to Rs 59,999 - Rs.450
Rs 60,000 to Rs 74,999 - Rs.600
Rs 75,000 to Rs 99,999 - Rs.750
Rs 1,00,000 to 1,24,999 -Rs 1,000
Rs 1,25,000 and above Rs 1,250
Professional Tax can be remitted online payment for five corporations only which include Thrissur, Thiruvananthapuram, Kannur, Kozhikode and Kollam.
Professional Tax Payment Due Date - PT liable to be paid half yearly; the first half being April to September and the second half being October to March. For the first half, you should pay the tax by the 31st of August, and for the second half, by the 28th of February.
Late Payment Penalty - you need to pay the professional tax within the said dates. Any delay in payment will attract a penalty of 1% and for non-payment, the penalty amount can be as high as Rs 5,000.
Professional Tax Exemption - As per the Kerala professional tax rule, some individuals are eligible for exemption on professional tax, they are - Textile industry ‘Badli’ workers; any mentally or permanently disabled child’s or individual’s parents
Members of the Navy, Air Force, and Army (according to the Navy Act of 1957, Air Force Act of 1950, and Army Act of 1950); Individuals with permanent physical disabilities; Senior citizens above 65 years of age; Auxiliary force or reservist members serving in Kerala. Agents of the Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings
According to the Income Tax Act 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction. Pl.check the latest amendment if any to the above features.
However, if there is no pay there need no deduction of PT. If there's part salary you may have to apply the slab rates published by the govt.
From India, Bangalore
The calculation of PT is on income earn by one on a particular month.
In the present case, the employee is having Zero income. How do the employer deduct % of PT from 0 income? Thereby, No PT for the period of Zero income. If, the law of the land speaks of PT without pay, then the employer has to pay instead.
From India, Mumbai
In the present case, the employee is having Zero income. How do the employer deduct % of PT from 0 income? Thereby, No PT for the period of Zero income. If, the law of the land speaks of PT without pay, then the employer has to pay instead.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Professional tax hyderabad.doc
Professional Tax.zip
Professional Tax 01-Apr-2009.pdf