Professional tax is deducted by the employer from the employee. When I first joined a private firm I was paid a very little salary. So, I was bummed when Rs. 200 was deducted from my salary which I earned. Later when I checked the payslip I realised that it was a professional tax which was deducted from my salary. At that time, I was pretty shocked since Rs. 200 was an amount which I didn't want to let go of. Later I realised why professional tax is deducted which helped me clear my doubts. So, I will explain my perspectives in brief.
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Professional tax is a tax levied by the state government. This tax is one source of revenue for the Government and is deducted from every employee for the betterment of professionals in every state. Thus, professional tax is deducted from salary. The maximum amount of professional tax is not more than Rs. 2,500 annually.
Who is supposed to pay professional tax?Companies and Business Firms
Limited Liability Partnerships (LLP)
Corporations
Co-op Societies and Associations
Hindu Undivided Family
Clubs
Lawyers and Legal practitioners
Contractors
Architects
Engineers
Insurance agents
Chartered Accountants (CA)
Company Secretary (CS)
Surveyors
Tax consultants
Management consultants
Doctors and other medical representatives
Parents or guardians who have kids with a mental disability or permanent disability
An individual who is physically disabled.
Senior citizens above 65 years
Members of the forces who belong to the Army Act, 1950.
Temporary employees working in the textile industry
Women working as agents under the Mahila Pradhan Kshetriya Bachat Yojana
I hope you now know why professional tax is deducted from salary.
Read more:
Who is Liable to Pay professional tax? How to Pay professional tax Online through HDFC Bank? How to File professional tax NIL Return in Karnataka? What is Due Date for Payment of professional tax?Shifting, House?
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Authors Of The Question
Why professional tax is deducted?
Anusuya Bhattacharjee
110Views
2 Year
2022-09-08T10:16:45+00:00 2022-09-08T10:16:46+00:00Comment
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