An employee has been on unauthorized absence for 3 months. He has rejoined duty and is facing 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 the tax amount to be levied falls down one slab rate. Kindly advise.
From India, Kochi
Acknowledge(0)
Amend(0)
From India, Kochi
Acknowledge(0)Amend(0)
Hi,
Professional tax is levied based on the earned income of the employee.
If an employee was on unauthorized leave for 3 months and it was leave without pay, then there is no question of considering nil salary for the purpose of professional tax calculation.
From India, Madras
Acknowledge(0)Amend(0)
1153Professional tax is levied based on the earned income of the employee.
If an employee was on unauthorized leave for 3 months and it was leave without pay, then there is no question of considering nil salary for the purpose of professional tax calculation.
From India, Madras
Acknowledge(0)Amend(0)
If the query is related to a legal position in Kerala, please 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 of 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 of 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction.
Professional tax in Kerala 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 is 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 of 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction. Please check the latest amendment to the above features, if any.
However, if there is no pay, there is no need for deduction of PT. If there's part salary, you may have to apply the slab rates published by the government.
From India, Bangalore
Acknowledge(0)Amend(0)
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 of 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 of 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction.
Professional tax in Kerala 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 is 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 of 1961, the total amount of professional tax you pay in a financial year can be considered a tax deduction. Please check the latest amendment to the above features, if any.
However, if there is no pay, there is no need for deduction of PT. If there's part salary, you may have to apply the slab rates published by the government.
From India, Bangalore
Acknowledge(0)Amend(0)
The calculation of PT is on income earned by one in a particular month. In the present case, the employee has zero income. How does the employer deduct a percentage of PT from zero income? Therefore, no PT for the period of zero income. If the law of the land mandates PT even without pay, then the employer has to pay instead.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Professional tax hyderabad.doc
Professional Tax.zip
Professional Tax 01-Apr-2009.pdf