1. Is professional tax applicable to all states?
No, PT is not applicable in all the states. For detailed information regarding applicable states please refer the following link - Professional Tax [Knowledge Base]
2. What is the amount deductible for professional tax?
The amount deductible for Professional Tax differs from state to state. To know the deductions applicable in your state please refer to the following link - Professional Tax [Knowledge Base]
3. Is PT applicable on Bonus?
Yes, PT is applicable on bonus. Section 17 of the Income Tax Act, 1961 defines ‘salary’ and it includes any payment received by an employee from an employer in cash, kind or as a facility. It encompasses various components such as basic salary, allowances, bonuses, commissions, perquisites, and profits in lieu of salary.
4. Are there any exemptions available for employees in PT applicability?
There are exemptions provided for certain individuals to pay Professional Tax under the Professional Tax Rules.
The following individuals are exempted to pay Professional Tax:
- Parents of children with permanent disability or mental disability.
- Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
- Badli workers in the textile industry.
- An individual suffering from a permanent physical disability (including blindness).
- Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
- Parents or guardians of individuals suffering from mental disability.
- Individuals, above 65 years of age.
4. Should PT registration be renewed – State wise?
No, there is no need to visit any office for the annual renewal of the Professional Tax registration. Once issued, the certificate remains valid until it is cancelled.
5. If the company registered in the state of Tamil Nadu and Having a Branch office at Bangalore with Employees getting Salary>25.000/- PM and Salary is paid from Head Office in Tamil Nadu, Where to Pay PT deducted Tax?
Profession tax is a State Tax and needs to be deposited to the state where employees are working irrespective of where the salary is being disbursed.
6. How many employees are required for PT to be applicable?
No, there is no minimum number of employees needed for PT to be applicable. PT becomes applicable within 30 days of starting a profession, business, or employment.
7. Are freelancers required to pay PT?
Even the Individuals are required to pay the professional tax irrespective of whether they are working in an organization or operating as a freelancer. Most online state government PT portals provide facilities to individuals for making PT payment.