Professional Tax...

This query is : Resolved

ajay das (Querist)
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26 May 2022 In west bengal, I've two situation for P Tax.
I. As an individual he pays P Tax of Rs. 2500/- p.a. and also receive salary from another co. without deducted P Tax (let say his salary is above 40K p.m). Is the co. liabile to show that employee's salary in P Tax return?
II. A director is receives salary from a co. let say he receive salary 15k-25k. What will be deducted ptax for the director? Rs. 150/- or Rs. 200/-?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 Let's address each situation regarding Professional Tax (PT) in West Bengal:

### Situation I: Individual paying PT and receiving salary without deduction

1. **Individual Paying PT:**
- If an individual is paying PT of Rs. 2500/- per annum as per the PT rules in West Bengal, this amount is typically paid by the individual based on their income from professions, trades, employments, etc.

2. **Receiving Salary from Another Company:**
- If this individual is receiving a salary from another company and the salary exceeds Rs. 40,000 per month, the company paying the salary is generally responsible for deducting PT from the salary of its employees.

3. **Company's Liability:**
- Yes, the company paying the salary (where the individual's salary is above Rs. 40,000 per month) is liable to deduct PT from the salary under the West Bengal PT Act. The company should deduct PT from the salary on a monthly basis as per the PT slab rates applicable in West Bengal.

### Situation II: Director receiving salary

1. **Director's Salary Range:**
- If a director is receiving a salary ranging between Rs. 15,000 to Rs. 25,000 per month, the PT deduction will depend on the specific PT slab rates applicable in West Bengal.

2. **PT Deduction Amount:**
- According to the West Bengal PT Act, the PT deduction amount for a director receiving a salary within this range would typically be Rs. 150/- per month.

3. **Calculation Basis:**
- The PT deduction for directors is generally based on fixed amounts specified in the PT rules rather than on a percentage of the salary. Therefore, for a salary range of Rs. 15,000 to Rs. 25,000 per month, the PT deduction amount would be Rs. 150/- per month.

### Conclusion:

- In Situation I, the company paying the salary to an individual earning above Rs. 40,000 per month is liable to deduct PT from the salary and remit it to the authorities.

- In Situation II, for a director receiving a salary between Rs. 15,000 to Rs. 25,000 per month, the PT deduction amount would be Rs. 150/- per month in West Bengal.

For precise and updated information, especially regarding any recent amendments or specific circumstances, it's advisable to refer to the latest PT rules in West Bengal or consult with a tax professional familiar with PT regulations in the state.