Professional Tax:

– Professional Tax is a tax collected by Revenue Department of the Corporation (levied by the State Government in India)

– It is compulsory and is  levied on the income earned by an individual by way of profession, trade or employment

– The Professional Tax amount is levied by the respective State Government and hence, the amount varies from State to State.

– The Employer must deduct Professional Tax amount from the Employees as per the slab rate and need to remit to the government.

– In Tamil Nadu, it is deducted once in SIX months and remitted to Government.

– The company also is required to contribute towards Professional Tax along with employees’ contribution.

 

Benefits:

Any amount contributed by the employees as Professional Tax is allowed as a deduction under Section 16 of the Income Tax Act for their individual Income Tax Calculation.

 

Due Date:

You need to remit the Professional Tax dues to Government as follows: (applicable for Tamil Nadu)

– For April to September – Deduct the dues from August Month Salary and remit on or before 25th September

– For October to March – Deduct the dues from February Month Salary and remit on or before 25th March

 

Slab Rates (Tamil Nadu): (as of Sep 2017)

Gross salary (Rs.)                  ( Half-Yearly) Professional Tax (Half yearly)
Upto 21000 NIL
From 21,001 to 30,000 Rs.100
From 30,001 to 45,000 Rs. 235
From 45,001 to 60,000 Rs.510
From 60,001 to 75,000 Rs. 760
Above 75,001 Rs.1095

Non-compliance:

If professional tax is applicable for your entity and if it’s not done, then the entity will be penalised with interest and fine with retrospective effect from the day the Professional Tax provisions become applicable for your entity. As it is a recovery from the salaries of the employees (and a meagre contribution by the employer), it is advisable to comply with the provisions in time to avoid unnecessary financial complications.

Contact us at info@cogzidel.in in case you require PT Registration.