Question: Is Professional Tax Deducted Every Month?

Who is liable for professional tax?

A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc.

are required to pay this professional tax.

Different states have different rates and methods of collection.

In India, profession tax is imposed every month..

What is TDS full name?

Income Tax Department > Tax Deducted at Source (TDS)

What is the minimum amount for TDS deduction?

Rs. 30,000Minimum Amount of Payment for Deduction of TDS under Section 194C. If the payment that is being made to the contractor does not exceed Rs. 30,000, No TDS on payment to contractor is required to be deducted. However, if the total of all such payments made or to be made during a financial year exceeds Rs.

What is TDS rate?

TDS Rates Applicable for Resident of IndiaTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.20211 5 (w.e.f from 01.06.2017) (If payment of Rent exceeds Rs. 50,000/- per month. ) 101 5 100.75 3.75 7.510 210 27.5 1.510107.510107.522 more rows•Sep 29, 2020

What is the rule of professional tax?

Profession Tax Rates in Key States of IndiaStateIncome per MonthTax Rate/Tax Amount (p.m.)KarnatakaUp to Rs. 15,000NilRs. 15,001 onwardsRs. 200Kerala (Half yearly income slabs and half yearly tax payment)Up to Rs.11,999NilRs.12,000 to Rs.17,999Rs.12028 more rows•Apr 25, 2020

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.

How is professional tax calculated?

Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500. … It is advisable for all such entities to apply for Profession Tax registration immediately upon incorporation.

What is the interest rate for late payment of professional tax?

1.25% per monthFor late payment of Professional Tax in Karnataka, Interest @ 1.25% per month would be levied and a maximum penalty of 50% of the Total Amount due may also be levied by the Karnataka authority. The Forms for Registration and for payment of this tax can be downloaded from here.

What are the benefits of professional tax?

Professional Tax in India Total amount of Professional Tax paid during the year is allowed as deduction under the Income Tax Act. The Professional Tax is a source of revenue for the state governments which helps in implementing schemes for the welfare and development of the region.

What is Prof split period?

It is paid by dividing the annual professional tax due into 12 equal instalments, which are to be paid every month. February, as a month, is an exception where the tax is higher than the other months. There might be situations where sources of income falling under different sectors are also liable for a separate tax.

On which amount Professional tax should be deducted?

Which states impose professional tax and what are the tax slabs?StateIncome per MonthTax Rate/Tax Amount (per month)KarnatakaUp to Rs. 15,000NilRs. 15,001 onwardsRs. 200Kerala (Half yearly income slabs and half yearly tax payment)Up to Rs.11,999NilRs.12,000 to Rs.17,999Rs.12028 more rows

How is basic salary calculated?

Basic Salary – DefinitionAnnual Basic = Monthly Basic X 12. Formula To Calculate Basic Salary. … Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other. Hence, to calculate your basic from the gross pay you need to do the reverse calculation. … Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other. … Basic = Gross Pay X Percentage.

Is professional tax and TDS same?

TDS amount is like advanced Tax. Professional tax is collected by state government. … The government rule is it deduct from your salary.

What is salary as per professional tax?

15,000 are levied a professional tax of Rs. 200. All working and self-employed professionals whose monthly income is above Rs. 1000 need to pay professional tax in Karnataka….Professional Tax Slabs in Karnataka.Monthly SalaryAmount PayableMore than 15,000Rs.200 per month1 more row

Is TDS deducted monthly or yearly?

As per Section 192, the employer will deduct TDS on salary at the time of making the payment to the employee. Since the employee gets a salary every month, the employer will make a deduction for TDS on salary every month. In case, the employer fails to deduct the same, he will be liable to pay the penalty and interest.

Is professional tax calculated on gross salary?

Professional tax is calculated every month based on your gross salary for that month. … The professional tax will be levied on this amount of Rs. 40,000. So, each month based on the increase or decrease of your gross salary, your professional tax slab will also differ and accordingly, your employer will deduct this tax.

Can professional tax be refunded?

PT can be claimed as deduction u/s 16(iii) to the extent it is paid in a FY irrespective of the period for which it is paid. So in this case, you can claim this deduction for next year.

How can I reduce my professional tax?

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.