Understanding Professional Tax Calculation for New Employees: Proportional Deductions Explained - CiteHR

Dear All,

I am tasked with calculating the professional tax for our employees. I have a query regarding new employees joining on the 30th of the month and working for 1 or 2 days. Should we deduct their professional tax for the entire month, or are there specific rules for deductions for new employees in their first month or for employees resigning in their last working month under the same circumstances?

Please assist me.

Akhi

From India, Delhi
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Hi Akhi,

P. Tax is calculated based on the slab rates fixed with respect to the salary earned by the employee each month. Therefore, if an employee joins after the 1st working day of a month, their salary will be computed proportionately. Consequently, depending on the salary earned during the month, the slab rate for P Tax purposes is determined.

I hope this clarifies your query.

Thanks & regards,
Perumal

From India, New Delhi
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