Question: Is Professional Tax And TDS Same?

Can professional tax be refunded?

PT can be claimed as deduction u/s 16(iii) to the extent it is paid in a FY irrespective of the period for which it is paid.

So in this case, you can claim this deduction for next year..

Is professional tax calculated on gross salary or net salary?

Professional tax is calculated every month based on your gross salary for that month. Say your CTC is Rs. 50,000 per month, and after deduction of your EPF, gratuity, and leave deduction or payment towards any loan you may have taken from the company in the past, your gross salary comes to Rs. 40,000.

How can I save tax on 20 lakhs?

Tax DeductionsSection 80C Exemption – 1,50,000.NPS 80CCD(1B) Tax Exemption – 50,000.Medical Insurance (Self & Parents) – 60,000.Interest on Education Loan – 50,000.

Is professional tax exempted?

Like any tax, professional tax is a source of revenue for the government. … Professional tax is a tax paid by all professionals and working individuals of companies falling under certain categories. This tax is compulsory and the amount paid towards professional tax is exempt from income tax.

On what amount TDS is deducted?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

Why is professional tax deducted?

Profession Tax is a tax which is levied by the state on the income earned by way of profession, trade calling or employment. … In the case of salary and wage earners, the profession tax is to be deducted by the employer from salary and wages, and the employer is liable to pay it to the state government.

Do I need to pay tax after TDS?

Irrespective of whether your employer has deducted tax at source (TDS) on your salary or you have paid tax on your own, you should file your income tax return (ITR) if you fit certain criteria.

How is PT salary calculated?

The amount of Professional Tax you pay is calculated 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.

How can I save my tax in 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

Who can file TDS return?

TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments : Payment of Salary.

What TDS means?

tax deducted at sourceTDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

Can I get TDS refund?

You can claim the credit in respect of taxes deducted at source and claim refund in the return of income. Please ensure that the TDS is reflected in your Form 26AS. Once the return of income is processed, you will be entitled to receive the refund of TDS.

Is professional tax part of income tax?

Professional tax or tax on employment is a tax levied by a state, just like income tax which is levied by the central government. … It is usually deducted by the employer and deposited with the state government. In your income tax return, professional tax is allowed as a deduction from your salary income.

Who is liable for professional 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. Different states have different rates and methods of collection. In India, profession tax is imposed every month.

How many types of TDS is there?

two typesTDS Certificates are of two types: Form 16 and Form 16A. Under Section 203 of the Income Tax Act, 1961, a certificate must be provided to the deductee showing the amount that has been subtracted as tax. The deductor is liable to provide this form to the deductee.

What is salary for professional tax calculation?

Which states impose professional tax and what are the tax slabs?StateIncome per MonthTax Rate/Tax Amount (per month)KarnatakaUp to Rs. 15,000NilRs. 15,001 onwardsRs. 200Kerala (Half yearly income slabs and half yearly tax payment)Up to Rs.11,999NilRs.12,000 to Rs.17,999Rs.12028 more rows

Is partnership firm liable for professional tax?

11 July 2013 Profession Tax is same for all kinds of establishment and it is not based on the constitution of the company as proprietorship, partnership or company. …

How do I file a PT return?

A step-by-step guide on how to pay professional taxHighlights.Locate the professional tax website for your state.Fill the professional tax payment form carefully.Verify the information and pay professional tax online.You can also pay this tax at the district sales tax office.

What is TDS rate chart?

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)SectionNature of paymentApplicable from 14/05/2020 to 31/03/2021TDS Rate (%)192SalariesNormal slab rate192APremature withdrawal from EPF10193Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year7.549 more rows

What is PF and PT in salary?

In this article, we will look at the features within Zoho Payroll that help you with the four statutory regulations: Employees’ Provident Fund (PF), Professional Tax (PT), Labour Welfare Fund (LWF), and Employee State Insurance (ESI).

What is difference between TDS and professional tax?

Here is simple difference between Income Tax and TDS: 1) Income tax is levied on all individuals or corporates for the income earned above the tax limit for that particular period. TDS is tax deducted at source. … TDS is deducted in cases such as from salary income, fixed deposits, etc.

What is PT in salary slip?

When you look at your payslip or salary slip, along with the deduction column, you will notice a deduction marked as “PT”. PT or Professional Tax, as it is called, is a tax paid to the state government. … Each state will have separate PT rates. Also, not all states collect or impose Professional Tax.

What salary is tax free in India?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

What is salary as per professional tax?

As per the Karnataka Professional Tax Slab Rates, all individuals with a monthly gross income less than Rs. 15,000 are exempted from any charges. However, employees with a monthly gross salary above Rs….Professional Tax Slabs in Karnataka.Monthly SalaryAmount PayableMore than 15,000Rs.200 per month1 more row

What is TDS full name?

According to the Indian tax system, Tax Deducted at Source (TDS) is an essential term in taxation that has a significant bearing on the taxpayers. It is a means of collecting income tax by the government and offers convenience to the deductee as it is deducted automatically.

What is TDS limit?

w.e.f 1st April 2019, TDS on the interest income from post offices and bank deposits have increased up to Rs. 40,000 from the present limit of Rs. 10,000. Section 194C: Payment to contractor/sub-contractors.