Quick Answer: What Is Salary As Per Professional Tax?

What is PT in salary slip?

When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”.

PT or Professional Tax, as it is called, is a tax paid to the state government.

Each state will have separate PT rates.

Also, not all states collect or impose Professional Tax..

How is salary slip calculated?

CTC = Earnings + Deductions Here, Earnings = Basic Salary + Dearness Allowance + House Rent Allowance + Conveyance Allowance + Medical Allowance + Special Allowance. Given below is a simple example of a salary slip showing all the basic breakups under two heads, earnings and deductions.

How is basic salary calculated?

Basic Salary – DefinitionAnnual Basic = Monthly Basic X 12. Formula To Calculate Basic Salary. … Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other. Hence, to calculate your basic from the gross pay you need to do the reverse calculation. … Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other. … Basic = Gross Pay X Percentage.

How is professional tax calculated?

How professional tax is calculated?Step 1: Consider if the professional tax is applicable in the state of residence.Step 2: If yes, determine the tax amount based on monthly income.Step 3: Look at the tax slab rates according to your salary.

Why is professional tax deducted?

Profession Tax is a tax which is levied by the state on the income earned by way of profession, trade calling or employment. … In the case of salary and wage earners, the profession tax is to be deducted by the employer from salary and wages, and the employer is liable to pay it to the state government.

How do I file a PT return?

A step-by-step guide on how to pay professional taxHighlights.Locate the professional tax website for your state.Fill the professional tax payment form carefully.Verify the information and pay professional tax online.You can also pay this tax at the district sales tax office.

Is professional tax applicable on gross salary?

As per the Karnataka Professional Tax Slab Rates, all individuals with a monthly gross income less than Rs. 15,000 are exempted from any charges. However, employees with a monthly gross salary above Rs. … 2400 is payable as professional tax in Karnataka.

What is Prof split period?

It is paid by dividing the annual professional tax due into 12 equal instalments, which are to be paid every month. February, as a month, is an exception where the tax is higher than the other months. There might be situations where sources of income falling under different sectors are also liable for a separate tax.

Is professional tax deducted every month?

Professional tax is calculated every month based on your gross salary for that month. … The professional tax will be levied on this amount of Rs. 40,000. So, each month based on the increase or decrease of your gross salary, your professional tax slab will also differ and accordingly, your employer will deduct this tax.

How much professional tax is deducted from salary?

Which states impose professional tax and what are the tax slabs?StateIncome per MonthTax Rate/Tax Amount (per month)KarnatakaUp to Rs. 15,000NilRs. 15,001 onwardsRs. 200Kerala (Half yearly income slabs and half yearly tax payment)Up to Rs.11,999NilRs.12,000 to Rs.17,999Rs.12028 more rows

Is it compulsory to pay professional tax?

It is a source of revenue for the government. … It is deducted by the employer from their employee every month and remitted to state exchequer and in some states sent to the Municipal Corporation. It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

Is PT refundable?

PT can be claimed as deduction u/s 16(iii) to the extent it is paid in a FY irrespective of the period for which it is paid. So in this case, you can claim this deduction for next year.

Is professional tax and TDS same?

In this case Icome Tax amount deduct when payment made and salary by prescribed Percentage according to income tax. TDS amount is like advanced Tax. Professional tax is collected by state government. … You may work in any organisation , but practicing your profession you are paying tax to the state government.

What is the section of professional tax?

2,500 can be levied as professional tax on any person per financial year. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.