How is P tax calculated?

How is P tax 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.

How much P tax is deducted from salary?

What is the maximum amount of professional tax levied by a state? The maximum amount of professional tax levied by a state is Rs. 2,500 which is allowed as a deduction from your salary.

How is P tax calculated in West Bengal?

The maximum amount charged as professional tax is Rs. 2500 per year….West Bengal Professional Tax Slab Rate 2019-20:

Monthly Gross Salary Amount Payable as Professional Tax Per Month
Up to Rs 10,000/- Nil
Rs 10,001-Rs 15,000/- Rs 110
Rs 15,001-Rs 25,000/- Rs 130
Rs 25,001-Rs 40,000/- Rs 150

What is the criteria for professional tax?

Your monthly gross income corresponding to the income slabs put forward by the state in which you are employed determines the amount you have to pay as professional tax. So, if your gross income every month is Rs. 30,000 and you are working in Maharashtra then you are liable to pay Rs. 200 every month except February.

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. Professional tax is a state-specific tax.

Who is responsible to collect and pay professional tax?

Profession tax is the tax levied and collected by the state governments in India. It is a direct 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.

How is basic salary calculated?

What Is Basic Salary? Definition, Formula & Income Tax

  1. Annual Basic = Monthly Basic X 12. Formula To Calculate Basic Salary.
  2. Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other.
  3. Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other.
  4. Basic = Gross Pay X Percentage.

What is the interest rate for professional tax?

1.25% per month
Professional Tax in Karnataka For late payment of Professional Tax in Karnataka, Interest @ 1.25% per month would be levied and a maximum penalty of 50% of the Total Amount due may also be levied by the Karnataka authority.

Who is liable for professional tax?

Individuals earning Rs. 10,000 or more per month are liable to pay the professional tax in Karnataka under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. If you are a salaried individual having a salary more than Rs. 10,000 but less than Rs.

What is salary for ESI?

The rates of the ESI contribution are calculated on the wages paid. Currently, the employee contribution is 0.75% of wages paid/payable, and employer contribution is 3.25% of wages paid/payable.

How to calculate professional tax for your state?

In order to calculate professional tax, you will need to first consider if professional tax is applicable in your state. You can then look at your state’s professional tax slab and determine your tax amount. This must be done keeping your salary amount in mind.

Is the professional tax the same as income tax?

Professional tax is not the same as income tax, but it an important component of your tax obligation. So, understanding it will help you file your taxes more easily and understand the deductions too. What is professional tax? Professional tax is a tax that is levied by the state government and applies to income you earn through employment.

How much is profession tax in a month?

₹ 208 per month upto Feb and ₹ 212 in March. ₹ 208 per month upto Feb and ₹ 212 in March. Profession Tax is Collectible half yearly. Profession Tax is Collectible half yearly. Profession Tax is Collectible half yearly. Due diligence is exercised in compiling the information by collecting it from various State and other sites.

Which is the maximum amount of professional tax in India?

Professional tax in India varies from state to state. The maximum amount of professional tax cannot exceed Rs.2,500 annually. Bajaj Finserv Business Loans up to Rs. 20 lakh | Money in bank in 24 hours | Doorstep document collection – Apply Now Which states impose professional tax and what are the tax slabs?