Is professional tax applicable in Gujarat?
Is professional tax applicable in Gujarat?
Professional tax is charged on salaried individuals and is paid to the Gujarat state government. Professional tax is deducted by the employer and the amount varies based on the employees’ income.
Who is exempted from professional tax in Gujarat?
Note on Schedule :- In Gujarat budget 1999 Finance Minister announced that “the society gets the benefit experience of senior citizens who remains active in their field. I propose exemption from profession tax to profession tax payers who have crossed the age of 65 years i.e senior citizens i.e more then 65 years age.
Who is responsible for professional tax in Gujarat?
State Government
A tax that is levied on employees and on those people carrying out a professional trade in India is called a Professional tax. The maximum amount that is levied as Professional tax on a person is Rs. 2,500 per year and the amount is remitted to the concerned State Government.
What is the rule for 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.
How is professional tax calculated?
Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500. Any employer with a ‘Certificate of Registration’ can be penalised by the government if this tax is not paid.
Who are all eligible for professional tax?
Profession tax is the tax levied and collected by the state governments in India. It is a direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax.
Can professional tax be claimed back?
It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any. It may be noted that professional tax is a deductible amount for the purpose of Income-tax Act, 1961 and can be deducted from taxable income.
How is professional tax deducted from salary?
If you are a salaried individual then as mentioned under Article 276(2) of the Indian Constitution, your professional tax will be deducted by your employer based on your salary slab from your gross income on a monthly basis and it will then be remitted to the state.
How is PT salary calculated?
However, you can also choose to simplify professional tax calculation on salary by using an online calculator. 20,000 a month, your monthly professional tax will amount to Rs. 200, and your annual professional tax will be Rs. 2,400.
Is professional tax calculated on basic salary?
When is professional tax deducted? If you are a salaried individual then as mentioned under Article 276(2) of the Indian Constitution, your professional tax will be deducted by your employer based on your salary slab from your gross income on a monthly basis and it will then be remitted to the state.
How much is a tax professional?
When it comes to tax preparation services, residents in New South Wales pay less compared to those in other states in Australia. At approximately $40/hr, they can have a qualified accountant to work on their tax returns.
What is professional income tax?
For professionals, government has introduced a new scheme of presumptive taxation (Section 44ADA), under which professionals can file their return declaring 50% of their gross receipts (which must be up to ₹50 lakhs) as income, and after deducting section 80 deductions, professionals need to pay tax on balance total …
