Quick Answer: Is Professional Tax Calculated On Gross Salary?

Is professional tax exempted?

Like any tax, professional tax is a source of revenue for the government.

Professional tax is a tax paid by all professionals and working individuals of companies falling under certain categories.

This tax is compulsory and the amount paid towards professional tax is exempt from income tax..

How do I file a PT return?

HighlightsHighlights.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.

Is professional tax applicable on gross salary?

As per the Karnataka Professional Tax Slab Rates, all individuals with a monthly gross income less than Rs. 15,000 are exempted from any charges. However, employees with a monthly gross salary above Rs. … 2400 is payable as professional tax in Karnataka.

What is deducted from gross salary?

Gross Salary: Subtract gratuity and the employee provident fund (EPF) from Cost to Company (CTC), the amount that you get is your Gross Salary. It is the amount that you get before deduction of income taxes and other deduction such as bonus, overtime pay, holiday pay etc.

Why is professional tax deducted?

Profession Tax is a tax which is levied by the state on the income earned by way of profession, trade calling or employment. … In the case of salary and wage earners, the profession tax is to be deducted by the employer from salary and wages, and the employer is liable to pay it to the state government.

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. … Also, not all states collect or impose Professional Tax.

What is HRA salary?

The amount employees receive from the employer as a part of the paid salary is called HRA (House Rent Allowance). HRA offers tax benefits to the employees for the amount paid by them for accommodations every year. … You can avail this exemption only if you live in a rented accommodation.

What is the gross monthly salary?

Your gross monthly income is everything you earn in one month, before taxes or deductions. This is typically outlined on your job offer letter, and you can find it itemized on your paycheck. Generally, if you make regular overtime, bonuses, or commissions, you can add this to your gross monthly income.

What is basic salary and gross salary?

Basic salary is the figure agreed upon between a company, its employee, without factoring in bonus, overtime, or any kind of extra compensation. Gross salary, on the other hand, includes overtime pay and bonuses, but does not consider taxes and other deductions.

How is professional tax calculated?

How professional tax is calculated?Step 1: Consider if the professional tax is applicable in the state of residence.Step 2: If yes, determine the tax amount based on monthly income.Step 3: Look at the tax slab rates according to your salary.

How gross salary is calculated?

To calculate gross pay, take their total annual salary and divide it by the number of pay periods within the year. If a business pays its employees twice a month, that equals out to 24 pay periods within a year. Determine annual salary by determining the amount of money earned annually. It acts as the amount earned.

Who is liable for professional tax?

It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any. As per Article 246 of the Constitution of India, only Parliament has the exclusive power to make laws with respect to Union List which includes taxes on income.