Introduction
Professional tax is a tax levied by the state governments in India on the income earned by way of salary or wages. It is applicable to all salaried individuals and is deducted from their salary by the employer. Calculating professional tax on salary in India is a simple process and can be done by following a few steps. This article will provide an overview of the process and explain how to calculate professional tax on salary in India.
How to Calculate Professional Tax on Salary in India
1. Determine the applicable professional tax rate. Professional tax rates vary from state to state in India. The rate is usually a percentage of your salary and is capped at a certain amount.
2. Calculate your gross salary. This is the total amount of salary you receive before any deductions.
3. Calculate the professional tax. Multiply the applicable professional tax rate by your gross salary to calculate the professional tax.
4. Deduct the professional tax from your salary. This is the amount of professional tax you need to pay.
Professional tax is the tax that will be levied on salaried employees and other professionals like chartered accountants. lawyers, doctors, and other professions. If you want to know how to calculate professional tax on salary in India then you must know some important points about professional tax slab in India. PT is not applicable in entire India, it is applicable to only certain states in India. There is no formula to calculate the professional tax. Professional tax is based on monthly salaries of individuals.
How to Calculate Professional Tax on Salary in India
As I said earlier there is no formula to calculate professional tax in India, it has to be paid according to the fixed professional tax slab rates in the states of India. Here you can find a list of professional tax slab rates in various states of India and also find professional tax due dates in various states of India.
Professional Tax Applicable States in India
Professional tax in India is applicable to states like Andhra Pradesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Pondicherry, Sikkim, Tamilnadu, Telangana, Tripura, West Bengal.
Professional Tax is Not Applicable States in India
Andaman & Nicobar Islands, Arunachal Pradesh, Chandigarh, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Delhi, Goa, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh & Uttarakhand.
Why Salaried Employees Should Pay Professional Tax
Every salaried employee in India has a responsibility to become a part of the development of the nation, for that they have to pay a part of their income towards professional tax. The professional tax will be fixed by the state governments. Not only salaried employees even self-employed professionals also need to pay professional tax. The collected professional tax will be utilized for the development activities of the states.
What is the Difference Between Professional Tax & Income Tax
There are a fixed income tax slab rates in India based on the annual income of individuals of India, in India up to 250000 Rs annual income there is no need to pay income tax. But in case of professional tax every salaried individual who are getting salaries under prescribed professional tax slab should need to pay the professional tax. Even employees paying income tax still they have to pay the professional tax.
Still, if you have any doubts on how to calculate professional tax in India then ask those queries in below comments section.
How to Calculate Professional Tax on Salary in India
Professional tax is a tax levied by the state government in India on the income earned by way of salary or profession. It is applicable to all salaried individuals and professionals who are earning an income in India. The amount of professional tax payable depends on the salary of the individual and the state in which they are earning the income. In this article, we will discuss how to calculate professional tax on salary in India.
Calculating Professional Tax on Salary in India
The amount of professional tax payable by an individual depends on the salary they are earning and the state in which they are earning the income. The professional tax rate varies from state to state and is usually a percentage of the salary earned. The rate of professional tax is usually between 0.5% and 2% of the salary earned.
In order to calculate the professional tax on salary in India, you need to first determine the salary slab applicable to you. The salary slab is determined by the state government and is based on the salary earned by the individual. Once you have determined the salary slab applicable to you, you can then calculate the professional tax payable by multiplying the salary slab rate with the salary earned.
For example, if you are earning a salary of Rs.50,000 per month and the applicable salary slab rate is 1%, then the professional tax payable by you would be Rs.500 per month. Similarly, if you are earning a salary of Rs.1,00,000 per month and the applicable salary slab rate is 2%, then the professional tax payable by you would be Rs.2,000 per month.
Conclusion
Professional tax is a tax levied by the state government in India on the income earned by way of salary or profession. The amount of professional tax payable depends on the salary of the individual and the state in which they are earning the income. In order to calculate the professional tax on salary in India, you need to first determine the salary slab applicable to you and then calculate the professional tax payable by multiplying the salary slab rate with the salary earned.
