Admin Table of Contents
Is professional tax taxable income?
The maximum amount of professional tax that can be levied by a state is Rs 2,500. 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.
What is the turnover limit for professional tax?
All working and self-employed professionals whose monthly income is above Rs. 1000 need to pay professional tax in Karnataka. Professional earning less than Rs. 10000 need not pay any professional tax to the Karnataka Government.
Is professional tax state wise?
professional tax is a tax levied at the state level in India. Some of the states which currently impose a professional tax in India are Maharashtra, Gujarat, Andhra Pradesh, Kerala, Tamil Nadu, Karnataka, Bihar, Assam, Madhya Pradesh, Telangana, Meghalaya, Odisha, West Bengal, Sikkim and Tripura.
What is salary for PT calculation?
Professional tax is calculated every month based on your gross salary for that month. Say your CTC is Rs. 50,000 per month, and after deduction of your EPF, gratuity, and leave deduction or payment towards any loan you may have taken from the company in the past, your gross salary comes to Rs. 40,000.
What is PT payslip?
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.
What is PT salary?
Professional Tax: All You Need to Know. When you take a look at your payslips, you will notice a small deduction mentioned on it, along with the other components like HRA, conveyance and basic salary break ups. This deduction is usually around Rs. 200 and is termed as professional tax.
Is professional tax paid monthly or yearly?
How can I reduce my professional tax?
The amount of professional tax collected does not exceed Rs. 2500 per annum. Under Section 16(iii), a deduction from salary can be claimed by the taxpayer on account of professional tax paid. The deduction for professional tax will be allowed in the year in which the tax is actually paid by the employee.
Is professional tax applicable in Assam?
The rates of professional tax differ from one state to another, but the maximum amount of professional tax payment does not exceed Rs. 2500. The total amount of professional tax remitted in a year qualifies as a deduction under Income Tax.
What is PT in Wipro payslip?
When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”. The employer deducts the tax from the salary and remits it to the state government account every month in a specified format. Professional tax is a state-specific tax.