| State Income per Month Tax Rate/Tax Amount (per month) | Gujarat Rs. 9000 to Rs. 11999 Rs. 150 | Rs 12000 and above Rs. 200 | Karnataka Up to Rs. 15,000 Nil | Rs. 15,001 onwards Rs. 200 |
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What is slab rate in tax?
₹187500 + 30% of total income exceeding ₹12,50,000. Above ₹ 15,00,000. ₹187500 + 30% of total income exceeding ₹15,00,000. ₹262500 + 30% of total income exceeding ₹15,00,000. New tax regime slab rates are not differentiated based on age group.
How is professional tax calculated?
Calculating your professional tax amount is not very difficult as it depends mostly on two factors i.e. state and income . ... In contrast, if you are a working in Maharashtra earning the same amount, your professional tax will be Rs. 200 for 11 months and Rs. 300 in February, with a total annual tax amounting to Rs.
How much does PT deduct from salary?
Professional Tax: All You Need to Know. When you take a look at your payslips, you will notice a small deduction mentioned on it, along with the other components like HRA, conveyance and basic salary break ups. This deduction is usually around Rs. 200 and is termed as professional tax.
What is the percentage of professional tax in salary?
| Monthly salary (in Rs.) Tax (in Rs. Per month) | Up to Rs.10,000 Nil | Rs.10,001 to Rs.15,000 Rs.110 | Rs.15,001 to Rs.25,000 Rs.130 | Rs.25,001 to Rs.40,000 Rs.150 |
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What is the rule for professional tax?
Professional tax is a tax on income charged by the State Government. The maximum limit of professional tax which can be levied on a person in a financial year is ₹ 2,500 . Not all States and Union Territories charge P Tax, like; Haryana, Delhi, Uttar Pradesh, Rajasthan, etc.
Who is liable for professional tax?
In case of Salaried and Wage earners, the Professional Tax is liable to be deducted by the Employer from the Salary/ Wages and the Employer is liable to deposit the same with the state government. In case of other class of Individuals, this tax is liable to be paid by the person himself.
What is the tax slab for 2020-21?
| Income Tax Slab New Regime Income Tax Slab Rates FY 2020-21 (Applicable for All Individuals & HUF) | Rs 0.0 – Rs 2.5 Lakhs NIL | Rs 2.5 lakhs- Rs 3.00 Lakhs 5% (tax rebate u/s 87a is available) | Rs. 3.00 lakhs – Rs 5.00 Lakhs | Rs. 5.00 lakhs- Rs 7.5 Lakhs 10% |
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What is the 80C limit for 2020-21?
The eligible taxpayers can claim deductions of maximum amount up to ₹ 1.50 Lakh per year . Both individuals and HUFs are eligible for income tax deductions under 80C. This section includes the following investments and expenses: Investment in PPF: You can claim a deduction for investment made in PPF account.
At what salary do I pay tax?
It is mandatory to file return of income for a company and a firm. However, individuals, HUF, AOP, BOI are mandatorily required to file return of income if the income exceed basis exemption limit of Rs 2.5 lakhs . This limit is different for senior citizens and super senior citizens.
How can I save tax on 2020 21?
- Public Provident Fund.
- National Pension Scheme.
- Premium Paid for Life Insurance policy.
- National Savings Certificate.
- Equity Linked Savings Scheme.
- Home loan’s principal amount.
- Fixed deposit for a duration of five years.
- Sukanya Samariddhi account.
What income is tax free?
STORY OUTLINE. The basic exemption limit for an individual depends on his/her age as well as his/her residential status. Individual taxpayers with net taxable income of up to Rs 5 lakh will continue to pay zero tax in both the tax regimes.
Is professional tax mandatory?
It is a source of revenue for the government. ... It is deducted by the employer from their employee every month and remitted to state exchequer and in some states sent to the Municipal Corporation. It is mandatory to pay professional tax . The tax payer is eligible for income tax deduction for this payment.
What is HRA salary?
HRA full form is House Rent Allowance . It is a part of your salary provided by the employer for the expenses incurred towards rented accommodation. You can claim HRA exemption only if you are residing in a rented house. HRA exemption is covered under Section 10(13A) along with rule 2A of the Income Tax Act, 1961.
How is basic salary calculated?
- Annual Basic = Monthly Basic X 12. Formula To Calculate Basic Salary. ...
- Gross Pay = Basic + DA + HRA + Conveyance + Medical + Other. ...
- Basic = Gross Pay – DA – HRA – Conveyance – Medical – Other. ...
- Basic = Gross Pay X Percentage.
Who is exempt professional tax?
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.
