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Former Member
Jun 05, 2009 at 06:35 AM

Professional Tax Calculation

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Hi Friends

Is Ptax is gross amount based or Gross earnings based??

As of my knowledge it is Gross Amount based means based on the IT 0008 Structure and upto 5K there is no Ptax as per currant slabs.

But My client is telling that the slabs should be applicable on Gross earnings. so in particular month an employee who comes under Ptax eligibility may not deducted the tax coz of LOP or any other reason in that specific month.

and an employee whose salry is less than 5k may get more than the 5k coz of OTs and any other earnings, in such case the Ptax should be deducted in that particular month.

so in this case how could i go about, do i need to maintain the Ptax eligibility for all employees in IT 588?? and is it correct PTAX config?? Mine is Indian payroll.

plz guide me in this issue.

Thanks

Lakshmi