What is a Professional Tax - P Tax
Professional Tax is literally ‘professional’ as employed and professional people are eligible to pay the taxes. Paying Tax is one of the processes that can maintain the income-expenditure ratio in society. According to an individual’s income, professional Tax is charged at an applicable slab rate. It is one of the processes paid for by salaried and self-employed professionals. In many countries, P-tax is one of the subjects based on the individuals’ income. The employed people pay a tax to the particular state government based on their employment. Professional Tax is the gross monthly income corresponding to the income slab and the state where the person is employed. Sometimes it is the process which can be described as the Tax which can lessen the interest of the employed person to earn more. As per the slab of the Tax, the Professional Tax is levied by the state government, which earns from a medium in the professional world. In this era of technology, professional taxes are deducted from the salary paid by respected companies to employees. Though there are some exceptional cases, such as people who are disabled or differently abled for them there is no sign of professional Tax.
Professional tax exemption section
Furthermore, the people offering services in the Navy, Army and other auxiliary services do not need to pay Tax in the professional world. A tax rate from Rs.110 (per month) to Rs.2500 (per annum) maximum can be deducted from the income of the individuals. Apart from this, calculating the P-Tax is getting easier by using the online methods of error-free calculation and the less time-consuming process. Two factors are liable for calculating the P-Tax, including the state itself and the income of individuals.
The professional Tax also has some penalty rates. That means if someone or any governing body cannot pay P-Tax in the limited time or due date, that person must pay the penalty for missing the due date, which is also dependent on the state legislative process. Apart from this, the deducted amount from the salary is based on the income of the employees who are earning above Rs. 10,000 and have to pay Rs. 110 per month to the registered state government. The professional tax process is changed according to the law and legislature of different countries, as the UK has a different rule for paying the Tax. The main rule of professional taxes in the UK is based on the earning level of an individual. Only if anyone is a professional practitioner like a doctor or lawyer is there no such bond for the people in the UK. Professional Tax is considered one source of revenue for the government and the betterment of the services of the professionals, and this system has been incorporated in all the countries around the globe. The income tax act 1961 has focused on the deduction of taxable amounts from the salary of professionals.
