Dear All,
If someone joins in middle of month the what should be his professional tax deduction?
e.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction. His earlier employer would deduct Rs 300 as Professional tax. while his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can someone throw light on how such situations should be handled? There would be many variations to this case.
I have taken Maharashtra state for calculation of Professional Tax
Thanks
From India, Mumbai
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14If someone joins in middle of month the what should be his professional tax deduction?
e.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction. His earlier employer would deduct Rs 300 as Professional tax. while his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can someone throw light on how such situations should be handled? There would be many variations to this case.
I have taken Maharashtra state for calculation of Professional Tax
Thanks
From India, Mumbai
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Really nice question. I also want answer of this question.
Another question is we have to deduct under Maharashtra PT 2500 per year from employee wages. If every month rs. 200 deduction is ok, but Rs. 300 should be deducted in Feb month or March Month??
Regards
Prashant Patil
From India, Nagpur
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Another question is we have to deduct under Maharashtra PT 2500 per year from employee wages. If every month rs. 200 deduction is ok, but Rs. 300 should be deducted in Feb month or March Month??
Regards
Prashant Patil
From India, Nagpur
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Hi All..
Rs. 300/- should be deducted in February only..
Other thing I also want to know in detail on deducting prof. tax for employees joining in the middle of the year.
Can anybody help..?
Thanks..
Raju Antony
From India, Mumbai
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Rs. 300/- should be deducted in February only..
Other thing I also want to know in detail on deducting prof. tax for employees joining in the middle of the year.
Can anybody help..?
Thanks..
Raju Antony
From India, Mumbai
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(Fact Check Failed/Partial)-The professional tax deduction should be prorated for both companies based on the number of days worked in each. In this case, it should be divided accordingly.
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Dear All, Why Professional tax is deducted Rs.300 in month of February in Maharashtra state ? & How its Calculated? Regards, HR_Praveen
From India, Pune
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From India, Pune
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(Fact Check Failed/Partial)-The professional tax deduction in Maharashtra is based on the employee's monthly salary. It is not a fixed amount like Rs. 300. Refer to Maharashtra PT rules for calculation.
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Hello Member,
I have a query regarding professional tax, Please provide me ceiling of Professional tax.
One thing more this deduct monthly from salary or yearly basis.
I am also calculating salary after TDS. so please if anyone can help me in this also
Thanks in advance
With Regard
Ritu
From India, Pune
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I have a query regarding professional tax, Please provide me ceiling of Professional tax.
One thing more this deduct monthly from salary or yearly basis.
I am also calculating salary after TDS. so please if anyone can help me in this also
Thanks in advance
With Regard
Ritu
From India, Pune
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(Fact Checked)-The professional tax is deducted based on the slab rates defined by each state. It is typically deducted on a monthly basis from the salary and not yearly. TDS is separate from professional tax deductions. (1 Acknowledge point)
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Profession tax cannot be pro-rated, as it is not deducted on an attendance basis. Rather, it is dependent purely on the gross salary for a given month. In Maharashtra, Rs.300/- is deducted in February, making it Rs.2500/- for the whole year.
In the case mentioned by Pappilon, both companies will deduct Rs.300/- each from their respective payrolls. Thus, the total deduction becomes Rs.2600/- for the entire year. There is no apparent problem in this, as the profession tax paid is admissible as a deduction from tax. Hence, the entire amount of Rs.2600/- will be exempted from tax for him.
From India, Mumbai
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In the case mentioned by Pappilon, both companies will deduct Rs.300/- each from their respective payrolls. Thus, the total deduction becomes Rs.2600/- for the entire year. There is no apparent problem in this, as the profession tax paid is admissible as a deduction from tax. Hence, the entire amount of Rs.2600/- will be exempted from tax for him.
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is incorrect. Professional tax should be calculated on a monthly basis, not a yearly one. The total deduction should be Rs. 300 for the month of February. Professional tax cannot be averaged out for the year as mentioned.
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I have a query: an employee joins on the 10th of February. His salary is 8000 Rs per month. His salary for 16 days amounts to 5565 Rs. I am unsure about the Professional Tax (PT) deduction from his salary. Will it be 175 Rs, or will it be 0 Rs? I am referring to the Maharashtra state PT slab. Please reply promptly; it's urgent.
From India, Indore
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From India, Indore
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(Fact Checked)-The Professional Tax deduction for an employee who joins on the 10th of February in Maharashtra with a salary of Rs 8000 for 16 days should be Rs 0. Professional Tax is not applicable for a monthly salary below Rs 7500 in Maharashtra. (1 Acknowledge point)
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(Fact Check Failed/Partial)-The Professional Tax deduction in Maharashtra is a yearly tax and not monthly. It should be deducted in the month of joining by the new employer.