Table of Contents
What is PT act?
The Commercial Taxes Department is the nodal agency which collects the Profession Tax dues from professionals in the State. The Constitution empowers the levy of Profession Tax subject to a maximum of Rs. 2500/- p.a. and a minimum slab of as low as Rs.
What is the rule of professional tax?
A maximum of Rs. 2,500 can be levied as professional tax on any person per financial year. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.
Why is professional tax deducted?
Professional tax one source of revenue for the government and is used towards bettering the services for professionals in that state. Thus, it is essential for every employer to deduct professional tax on salary, although there are a few exemptions related to this. Professional tax in India varies from state to state.
What is PT calculation?
A professional tax is calculated on the basis of your salary and predetermined slabs. You can have to pay anything between ₹ 200 to ₹ 2500 a month.
What is the due date for PT payment?
If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).
What is GTO in professional tax?
Goods Transport Operator (GTO) – a transporter who does not give a consignment note, but offers a chllan or kachcha bill. Roadside Tempo – a transporter who does not give a consignment note or a challan or kachcha bill, but takes payment of freight over your cash payment vouchers.
Who is liable for professional tax?
In case of Salaried and Wage earners, the Professional Tax is liable to be deducted by the Employer from the Salary/Wages and the Employer is liable to deposit the same with the state government. In case of other class of Individuals, this tax is liable to be paid by the person himself.
What is professional tax and applicability?
It is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.
Who is responsible for profession tax?
What is Professional Tax benefit?
Professional tax is calculated every month based on your gross salary for that month. Say your CTC is Rs. 50,000 per month, and after deduction of your EPF, gratuity, and leave deduction or payment towards any loan you may have taken from the company in the past, your gross salary comes to Rs. 40,000.
What is PT annual return?
Every employer registered under the Profession Tax Act is required to furnish an annual return in Form 5 within 60 days of the expiry of a year. Further, the employer shall pay the full amount of tax payable on the basis of such return as reduced by any tax already paid along with monthly statement in Form 5A.
What is GTO and GTA?
Goods Transport Agency (GTA) – a transporter who gives a consignment note. Goods Transport Operator (GTO) – a transporter who does not give a consignment note, but offers a chllan or kachcha bill.