Profession tax, Telangana

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This query is : Resolved

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This discussion clarifies how Telangana's Profession Tax is calculated. It addresses whether the tax is based on gross salary, net salary, or actual salary received after deductions and leaves. The consensus leans towards calculating the tax on the gross salary earned before any deductions, though there's a query about how unpaid leave affects this gross amount.

lakshmi

lakshmi (Querist)

12 May 2020 On what salary do we consider Profession tax slab for Telangana state?
Is it the net salary (after all deductions like TDS, PF, ESI, Advance) or Gross salary(after leaves) or Actual salary of an employee?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

13 May 2020 Professional tax is calculated on Gross salary earned during the month before any deduction.

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lakshmi

lakshmi (Querist)

17 May 2020 I am not clear about Gross salary.
Suppose actual pay of an employee is 20000/- p.m., leaves are 10 days, so (20000/31)*10=6452/- , then is gross salary (20000-6452=13548/-)?
Please clarify. Is it this amount on which PT has to be considered?
Appreciate early reply.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

21 May 2020 I think it should be based on Net Salary Payable to the employee but before deduction of any taxes like TDS, or loan/advance/purchases. It would be very unfair if we pay according to Gross Salary as suppose someone may have 20 days of leave but still he will be paying professional tax on his full salary which is never received in the month. If there are a lot of leaves or absence then it is logical to pay as per reduced salary slabs only.

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lakshmi

lakshmi (Querist)

14 September 2020 Thank you so much for the replies.

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