How To Calculate Professional Tax On Salary? (Solution)

It is computed on the basis of your pay and specified slabs to establish your professional tax. Depending on your situation, you may be required to pay anywhere from 200 to 2500 every month.
Tax slabs for professionals.

State Gross monthly salary (Rs.) Tax per month (Rs.)
Karnataka 15,000 and above 200
Telangana 20,000 and above 200
Tamil Nadu 12,500 and above 182


How is professional tax calculated?


Is professional tax calculated on gross salary?

In order to calculate the professional tax, you must calculate your gross monthly salary in accordance with the income slab applicable in the state where you are working. As an example, if your gross monthly salary is Rs. 30,000 and you work in Maharashtra, you will be required to pay Rs. 200 every month, with the exception of February.

What is professional tax in TCS?

What exactly is professional taxation? In India, professional tax is imposed by certain municipal corporations, and the vast majority of Indian states enforce this obligation. It serves as a source of revenue for the government as a whole. The highest amount that may be paid in a year is INR 2,500, and there are fixed slabs that are based on the wage of the tax payer.

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What is PF and PT in salary?

Employees’ Provident Fund (PF), Professional Tax (PT), Labour Welfare Fund (LWF), and Employee State Insurance (ESI) are just a few of the legislative rules that Zoho Payroll can help you comply with (ESI).

How is basic salary calculated?

What Is the Basis of Salary Compensation? Income Tax Defined and Formula Income Tax

  1. Annual Basic Equals Monthly Basic multiplied by twelve. The Basic Salary Calculation Formula is as follows:
  2. Gross pay is made up of the following components: base salary, DA, HRA, conveyance, medical, and other.
  3. Basic = gross pay less deductions for administrative expenses, health and welfare reimbursements, conveyance, medical expenses, and other expenses. Fundamentals = Gross Pay X Percentage.

Is professional tax and income tax same?

It is similar to income tax, which is imposed by the federal government, in that it is levied by a state and called professional tax or tax on employment. It is possible for a state to impose a maximum of Rs 2,500 in professional tax on a single individual. It is typically deducted by the employer and deposited with the appropriate state government agency.

How do I claim PT?

You will not be reimbursed for your professional tax. However, you can claim a deduction for your profession tax when you complete your pay returns. Under professional tax, there is often no method for obtaining a refund. If, on the other hand, the payment is made accidentally, the professional tax statute of the specific state will specify how to recover the money paid in error.

How do I calculate tax on my salary in Excel?

In the formula bar, type the formula =B2-B3-B4 and press the Enter key to submit the entry. Step 4: Taxable income is now calculated by subtracting gross income from total income, which is $219,000. “Taxable income is the amount of money on which we impose the tax.” “On incomes below $250,000, the tax rate is 5 percent.” Because the taxable value is between 1.5 and 2.5 lakhs, a 5 percent tax rate will be applied to the income.

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