1. #1
    Unregistered

    What do you mean my professional Tax?

    I have been working in BPO Company from past 1 year and my salary 3 lac per annum. Every month they deduct professional tax from the salary. I want to know why they deduct this amount. What do we mean by professional tax?

  2. #2
    sagar R. Array
    Join Date
    Oct 2012
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    106

    Re: What do you mean my professional Tax?

    Professional tax mean the tax on professional ,calling,trade & employment.
    Each company engage with profession,calling,trade,employment have to pay tax to government.
    Professional tax is one of the source for revenue for government.
    Professional tax imposed at state level.It varies state by state.It's also vary according to salary or income of employee.
    In the company,Professional tax is taken from employed members and sent to state goverment or municipal corporation.
    It's compulsory just like income tax.
    That's why professional tax deduct from your salary.if you have any problem,then you can not take any step against it.It's rules of government and you should have to follow it.

  3. #3
    san8 Array
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    Sep 2012
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    Re: What do you mean my professional Tax?

    Professional tax is a tax levied by the state government on the employees of private business organisations. This tax covers every individuals who are involved in professions, trade and employment. In most of the states the purpose of the tax is to gather revenue for implementing employment guarantee schemes. This type of tax also holds the same motive of other taxes i.e. taxing from the better off people and supports the poorer people through it, this is to ensure equal distribution of income in a particular region. When you are able to earn on your own the government initiates to tax a certain amount of your earnings not for their own profit but to help poor and unemployed people.

  4. #4
    Labournet Law Consultancy Array
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    2nd Floor, Patel Complex, Basin Road, Ernakulam, Kerala
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    Re: What do you mean my professional Tax?

    Profession tax is one type of tax which is collected by the municipality, corporation or panchayath from the professional working in an establishment. It is mandatory for all the employer to collected tax from his employees. The tax collected is used for the welfare of the society at large. The collection of profession Tax depence upon the states. This is collected as per the state Act. It is governed by the Professional Tax Act which is a state act. It is collected on the basis of salary earned by an employees. In some states it is collected every month and in some state it is collected half yearly. As far as my state Kerala is concerned it is collected half yearly ie in the month of March and september. In kerala the professional tax slab schedule is as follows.


    SCHEDULE
    (See rule 3)

    (Rates of Profession Tax in force is appended below) from Nov.2010

    Sl.No Half Yearly Income Half Yearly Tax
    1 Rs 12000 to Rs 17999. Rs 120
    2 Rs 18000 to Rs 29999 Rs 180
    3 Rs 30000 to Rs 44999 Rs 300
    4 Rs 50000 to Rs 59999 Rs 450
    5 Rs 60000 to Rs 74999 Rs 600
    6 Rs 75000 to Rs 99999 Rs 750
    7 Rs 100000 to Rs 124999 Rs 1000
    8 Rs 125000 and above Rs 1250












    For example if the salary of an employee is 20, 000. Then his half yearly salary will be 20,000 X 6 = 1,20,000. Then the professional Tax to be paid is 1000 since it comes under the 7th slab ie Rs. 10,0000 to 124999.
    LabourNET Law Consultancy
    Leading Labour law Compliance Consultancy in Kerala having PAN India presence.
    8129016649

  5. #5
    nikhil202k Array
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    Re: What do you mean my professional Tax?

    tax.jpg






    Information about Professional Tax :
    Professional Tax may be defined as the if you are working in Professional Organization or firm of reputed then you required to pay a Tax and it is a State level duty .

    The criteria for paying tax is different for each state and vary from one state to another .

    And it is levied by Particular Municipal corporation .This of professional categories which are considered for paying tax are following as :

    >>> Employed Individual

    >>> Professional

    This complete process is called Professional Tax .

  6. #6
    Ashok Array
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    Jul 2012
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    2,293

    Re: What do you mean my professional Tax?

    Dear Aspirant

    The tax levied on any employee whether it is govt. or pvt.is called the professional tax.It is levied on the basis of the payment of the employees.In some of the state ,the state government levied its employees the professional tax Rs 1000/ whose income is up to 5.0 lac & for the employee above this amount is Rs 2000/per year.

    This tax is levied by the muncipal council.

    Thanks.

    ashok

  7. #7
    Unregistered

    Re: What do you mean my professional Tax?

    Quote Originally Posted by Unregistered View Post
    I have been working in BPO Company from past 1 year and my salary 3 lac per annum. Every month they deduct professional tax from the salary. I want to know why they deduct this amount. What do we mean by professional tax?


    Professional tax is charged by respective Municipal Corporations and most of the States in India charge this tax. The maximum tax payable per annum is Rs.2,400/- and according to your salary, there are fixed slabs. This tax is paid by every employee working in Private organizations. The tax is deducted by the Employer every month and remitted to the Municipal Corporation and it is mandatory like income tax. You get income tax exemption for this contribution.

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