Is professional tax mandatory?
Is it mandatory to pay professional tax? Yes, if you are a salaried individual, it is mandatory to pay professional tax.
Who is eligible for professional tax?
A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection. In India, profession tax is imposed every month.
Who is exempt from professional tax?
The following individuals are exempted to pay Professional Tax: Parents of children with permanent disability or mental disability. Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
How much does PT deduct from salary?
Thus, it is essential for every employer to deduct professional tax on salary, although there are a few exemptions related to this. Professional tax in India varies from state to state. The maximum amount of professional tax cannot exceed Rs. 2,500 annually.
What is the rule for professional tax?
A maximum of Rs. 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.
Who is responsible to collect and pay professional tax?
It is a direct tax that states levy on all individuals earning income. Though state governments handle professional tax, not all states charge it from individuals. According to the Article 246 of the Constitution of India, only Parliament has exclusive rights to make laws with respect to income tax.
How is PT salary calculated?
For example, if you are a working professional in Gujarat earning Rs. 20,000 a month, your monthly professional tax will amount to Rs. 200 and your annual professional tax will be Rs. 2400.
Is professional tax paid by employer?
If you are employed, your employer makes a professional tax payment to the state government. If you are a professional with your own practice, you need to make the professional tax payment on your own. The amount to be deducted depends on the slabs set out by every Indian state individually.
Can I claim professional tax?
Professional tax or tax on employment is a tax levied by a state, just like income tax which is levied by the central government. … It is usually deducted by the employer and deposited with the state government. In your income tax return, professional tax is allowed as a deduction from your salary income.
Is professional tax and TDS same?
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 HRA salary?
HRA full form is House Rent Allowance. It is a part of your salary provided by the employer for the expenses incurred towards rented accommodation. You can claim HRA exemption only if you are residing in a rented house.
Is professional tax exemption for physically handicapped?
Any person suffering from a permanent physical disability (including blindness), being a permanent physical disability specified in the rules made in this behalf by the State Government, which is certified by a physician, a surgeon or an oculist, as the case may be, working in a Government Hospital is exempt from …
How do I file a PT return?
A step-by-step guide on how to pay professional tax
- 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.
How is TDS calculated?
The employer deducts TDS on salary at the employee’s ‘average rate’ of income tax. It will be computed as follows: Average Income tax rate = Income tax payable (calculated through slab rates) divided by employee’s estimated income for the financial year. … 1,00,000 per month during the FY 2019-20.