Quick Answer: Is Professional Tax Applicable On Gross Salary Or Net Salary?

Is professional tax applicable on gross salary?

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.

2400 is payable as professional tax in Karnataka..

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

How do you calculate gross salary from net pay?

Net Salary = Gross salary – All deductions like income tax, pension, professional tax, etc. Net salary is also referred to as Take Home Salary.

How do I calculate my take home pay from my gross salary?

Take Home Salary = Gross Salary – Income Tax – Employee’s PF Contribution(PF) – Prof. … Gross Salary = Cost to Company (CTC) – Employer’s PF Contribution (EPF) – Gratuity.Gratuity = (Basic salary + Dearness allowance) × 15/26 × No.More items…

What is the rule of professional tax?

Profession Tax Rates in Key States of IndiaStateIncome per MonthTax Rate/Tax Amount (p.m.)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•Apr 25, 2020

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.