Professional Tax (PT)
When viewing your employee’s pay slip or salary statement, you’ll see a deduction called ‘PT’ in the deductions column. PT, sometimes known as Professional Tax, is a charge paid to the state government by the employer on behalf of the employee.If you want to learn more about PT, you’ve come to the perfect spot. In this blog, we will talk about Professional Tax.
Every employee is required to pay PT based on his/her income. The employer deducts the tax from the employee’s salary every month and remits it to the state government account in the proper form.
Professional taxation is a state-specific tax. Each state has unique PT rates, and not all states collect or charge professional taxes.
First, let’s look at the states that have PT.
States which impose PT or Professional Tax
States that collect or collect PT are:
- Andhra Pradesh
- Maharashtra
- Gujarat
- New Delhi
- Karnataka
- Tamil Nadu
- Madhya Pradesh
- West Bengal
Know more – Professional tax for different states
Who deducts PT?
If you own a business and have employees, you must deduct Professional Tax (PT) from their salaries and pay it to the government on time. If you forget or don’t do it correctly, you will have to pay fines. But if you work for yourself, you must handle Professional Tax yourself. If you don’t pay on time, you’ll have to pay a 10% penalty.
What is the Amount of Professional Tax to be paid?
The maximum amount of PT to be paid annually is INR2,500. Their profession and monthly income also determine individuals’ PT.
How does (PT) Professional work?
The different states and union territories determine the professional tax formula and slab rates. The state government has the authority to make PT optional in states. The employer deducts the Professional Tax from the employee’s monthly income and pays it to the state government. Each state’s commercial tax department collects the tax.
How to fill the application form of Professional Tax (PT)?
To file the PT return or fill out the application form, you must follow the procedure:
1. Visit the official state commercial tax dept website.
2. Continue for the PT return.
Professional tax (PT) is applicable for?
t applies to both individuals and entities:
- Hindu Undivided family (HUF)
- Associations
- Society
- Management consultant
- Club
- Corporations
- Companies
- Chartered accountant
- Contractor
- CS
- Legal practitioner
- Firms
- LLP
- Insurance agents
- Tax consultant
- Medical practitioners such as – doctor
- Engineers
- Architectures, and Others.
Who all are exempted from Professional Tax?
1. Charitable hospitals and philanthropic institutions exist in taluka-level communities.
2. Ex-servicemen who fall under Schedule 1.
3. A disabled person with a 40% disability. However, all relevant certificates must be provided.
4. An individual with a license to transport products in a single taxi or three-wheeler.
5. For people who are blind, dumb, or deaf and earn an income.
6. Individuals who have only one kid and have undergone sterilization should provide the necessary documentation.
7. Foreign technicians employed by the state.
8. An individual who runs educational facilities and teaches classes up to the 12th grade.
9. Who all serve in the Central Paramilitary Force (CPF)?
10. Those who all belong to the military forces. Combatant and non-combatant.
11. Badli people work in the textile industry.
12. Individuals over the age of 65.
13. Parents with children who all have mental health issues or other difficulties.
14. Women working as agents for Mahila Pradhan Kshetriya Bachat Yojana or the Director of Small Savings.
15. Individuals who suffer from lifelong mental or physical disability.
FAQs
1. Is professional tax applicable for freelancers?
Ans: Yes, this applies to freelancers. If freelancers make more than the state’s authorized maximum, they must pay professional taxes.
2. Why are professional taxes different for all states and union territories?
Ans: Because the state government imposes a professional tax, each state has its own PT slab rate, which varies from one another.
3. What will be the penalty if I miss paying the Professional Tax?
Ans: If you fail to pay the PT, you must pay 1.25% every month in penalties within a deadline.
4. If I face some queries, where can I resolve my queries?
Ans: If you have any questions, please visit the state’s website and contact the department by chat or by phone at the number provided.
Karnataka PT, Maharashtra PT, Gujarat, Tamil Nadu, Andhra Pradesh
We hope this post helped to answer your PT-related questions.
Are there any further questions? Please let us know in the comment area below.
