Professional tax

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kaushik halai

kaushik halai (Querist)
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07 March 2016 whether professional tax should levy on due of salary or payment of salary...?

Yogesh Shukla

Yogesh Shukla (Expert)
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07 March 2016 No Need to pay anything if you are not earning.... like esic, pf, tds, Professional tax also.
Do let me know for more information on the same.

kaushik halai

kaushik halai (Querist)
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09 March 2016 employee had not resigned yet but he is not on duty. hence no payment has been made. so should professional tax would be charged or not?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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10 August 2024 In the context of professional tax, the applicability and timing of the levy can vary by jurisdiction. However, generally speaking:

### **Professional Tax Levy**

1. **Due of Salary vs. Payment of Salary**:
- **Due of Salary**: Professional tax is typically applicable on the basis of the actual salary paid rather than the due salary. If an employee is entitled to a salary but has not yet received it, the professional tax liability would usually arise only when the salary is actually paid.
- **Payment of Salary**: Professional tax is usually levied based on the payment of salary. If the salary is not paid, professional tax is not generally applicable.

2. **Employee on Duty vs. Not on Duty**:
- If an employee is still technically employed (even if not actively working) and the salary is due, professional tax will be applicable when the salary is paid.
- If no salary is paid (e.g., due to the employee not being on duty), then professional tax is typically not due. The tax liability arises when the salary is actually paid, not when it is merely due.

### **Practical Application**

- **For Employees Not on Duty**: If an employee is not on duty and no salary is paid, professional tax generally does not need to be deducted. The liability arises when the salary is actually disbursed.
- **For Companies**: Ensure to maintain accurate records of payments and withhold professional tax only on actual salary payments.

### **Relevant Provisions**

- **Maharashtra**: According to Maharashtra Professional Tax Act, professional tax is typically payable on the payment of salary. The Act specifies that the tax is deducted from the salary at the time of payment, not on the basis of accruals.

### **Summary**

- Professional tax should be levied on the actual payment of salary.
- If no salary is paid due to the employee not being on duty, professional tax should not be charged.

Always refer to the specific professional tax rules and regulations in your state or jurisdiction for the most accurate and legally binding information. If in doubt, consulting with a tax professional or legal advisor is recommended to ensure compliance with local tax laws.

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