When is occupational tax deducted?If you are a salaried person, your occupational tax will be deducted by your employer as stated in Section 276(2) of the Indian Constitution According to the salary table in your gross income Once a month, then remit it back to the country.

Is occupational tax paid monthly or annually?

It is paid by dividing annual professional tax Payment is due in 12 equal instalments, each month, except the instalment paid in February which is higher than the other months. In some cases, sources of income belonging to different sectors may also be subject to separate taxation.

Do I have to deduct professional tax?

Do I have to pay professional tax? Yesif you are a salaried individual, you must pay occupational tax.

What are the rules for professional taxation?

A professional tax is a tax levied by the state on income.The maximum amount of occupational tax that can be levied on an individual in a financial year is 2,500 rupees. Not all states and union territories charge P tax eg; Haryana, Delhi, Uttar Pradesh, Rajasthan etc.

Who is responsible for professional tax?

Occupational tax may be deducted in the case of salaried and wage earners Employer in salary/Wages and employers are responsible for depositing it with the state. In the case of other categories of individuals, this tax is payable by the individual.

🔵 Professional tax calculation, eligibility, penalty explanation

39 related questions found

What is PT in payroll?

When you look at your pay stub or pay stub and the deduction column, you will notice the deduction marked « PT ». PT or occupational taxAs the name suggests, it is a tax paid to the state government. …in this article, we’ll discuss professional taxes. Every employee must pay PT based on his/her income.

Who is exempt from occupational tax?

The following individuals are exempt from occupational tax: Parents or guardians of children with mental or permanent disabilities. Individuals with permanent physical disabilities, including blindness. Anyone over the age of 65.

Can I apply for occupational tax?

Occupational tax or employment tax is a tax levied by the state, just like income tax levied by the central government. …usually deducted by the employer and deposited into the state. On your income tax return, Allow occupational tax deductions from your salary income.

Is occupational tax calculated on gross salary?

Calculate professional tax Each month based on your gross salary for the month… Professional tax will be levied on this amount of Rs. 40,000. So each month your professional tax table will vary depending on whether your gross salary increases or decreases, so your employer will deduct this tax.

How is PT salary calculated?

How is Karnataka’s PT calculated?In Karnataka, occupational tax is based on gross income…if this amount exceeds Rs 15,000 per month, the individual is liable to pay Rs 200 as tax.

Why pay professional tax?

Occupational tax is one of the sources of government and government revenue Used to improve the services of professionals in the stateTherefore, every employer must deduct professional tax from wages, although there are some exemptions related to this. Occupational taxes in India vary from state to state.

How is the base salary calculated?

What is base salary? Definitions, formulas and income tax

1. Annual base salary = Monthly base salary X 12. Formula for calculating base salary. …
2. Gross Salary = Basic + DA + HRA + Transportation + Medical + Other. …
3. Basic = Gross Salary – DA – HRA – Transportation – Medical – Other. …
4. Base = Gross Salary X Percentage.

What is the ESI no on the payroll?

This is 17-bit unique identification number assigned to each plant/An institution registered under the provisions of the Act. Such figures are generated through the ESIC portal when employers submit relevant information.

Isn’t it considered agricultural income?

Is agricultural income taxable? default, Farm income is exempt from tax and is not included in gross income. The central government cannot tax agricultural income. Section 10 (1) of the Income Tax Act of India refers to the exemption clause.

What income is tax exempt?

According to the 2019 mid-term budget, the taxable annual income of individual taxpayers does not exceed Rs 5 lakh Will get a full tax refund u/s 87A so no income tax will be paid. However, the income tax rates and rates for the 2019-20 financial year will remain unchanged.

Is college tuition taxable?

If the course you are studying will maintain or improve your skills in your current occupation, you can use the cost of your study as self-study cost. You can also be reimbursed for course fees, textbooks, stationery, travel expenses, and depreciation on items such as laptops, tablets, and printers.

How will you check the cycle of Ptrc Return 2020 21?

To check the status of a specific PTRC_TIN, follow the steps below. Press Ctrl+F button >>> new window >>> enter PTRC TIN with suffix P >>> click on « Find All » tab. 5. Distributors are advised not to request any departmental authority for a change cycle.

Is HRA part of base salary?

For most employees, Housing Rent Allowance (HRA) is part of their salary structure. Although it is part of your salary, HRA is not fully taxable unlike base salary. Certain HRAs are exempt under Section 10 (13A) of the Income Tax Act 1961 under certain conditions.

How do I file a PT return?

A step-by-step guide on how to pay professional taxes

1. emphasize.
2. Find a professional tax website for your state.
3. Complete professional tax returns carefully.
4. Verify information and pay professional tax online.
5. You can also pay this tax at a regional sales tax office.

Who is eligible for PTEC?

Ans: In addition to PTEC, if the company has Any employee whose monthly salary is higher than Rs. 7500/- It is also necessary to obtain a Professional Tax Registration Certificate (PTRC) and pay taxes after deductions from employees’ wages as required by law.

Is PTEC mandatory?

Obtaining PTEC registration is Mandatory within 30 days from the date of incorporation of the company Or commencement of business or practice, ie; You must apply for PTEC within 30 days of obtaining S&E License, Certificate of Incorporation, Service Tax RC, Sales Tax RC, etc.

What is an example base salary?

For example, if the employee’s gross salary is Rs. 40,000, the base salary is rupee. 18,000, he or she will receive Rs. 18,000 as a fixed salary, in addition to other allowances such as rent allowance, transportation, communication, family allowance, city allowance or any other special allowance.

Is base salary the same as gross salary?

gross salary

Amount of wages paid Give you After adding all your benefits and allowances and before deducting any taxes. The composition is as follows: Basic salary. Your contribution to medical assistance, pensions/providers, group living, etc.