Why professional tax is deducted

Taxes 2022, CNET's coverage of the best tax software and everything else you need to get your return filed quickly, accurately and on-time. The way we work has shifted significantly over the past two years -- and if you were part of the Great Resignation, you might have even started your own business or opted for a freelance or a remote position. More people have had to navigate working from home and the workplace expenses that come with it. And currently, the best-known employment-related tax deduction -- for home office expenses -- is reserved for those who are both self-employed and have a dedicated home space for working. Still, there are a handful of other work-related expenses that both corporate employees and the self-employed may be eligible to claim on their taxesthis season. Remember: For most taxpayers, the deadline to submit your 2021 federal tax return or request for an extension is Monday, Apr. 18, 2022. Claiming work expenses: First, choose a deduction Before you start going through every line item of every receipt, you may want to save yourself the trouble and figure out which you'll take: the standard deduction or the itemized deduction. Standard deduction: The standard deduction is an all-encompassing flat rate, no questions asked. For tax year 2021, the flat rate is $12,550 for single filers and those married filing separately. The rate is $25,100 for married filing jointly. Taking this route is much easier than itemizing. Itemized deduction: If you want...

The Maharashtra State Tax on Professions, Trades, Callings and Employment Rules, 1975 have been amended by the Maharashtra Government. This has increased the professional tax liability limit for submission of returns (for certain groups of people) from ₹50, 000 to ₹100, 000. If you have taken a close look at your detailed payslip, you might have seen certain deductions in it. You don’t get your full basic pay every month. Rather, a certain sum of money is lost from that, and this might be due to EPF deduction of TDS deductions. Another important deduction that occurs on your basic salary is the one for Professional tax. While you are losing out on some money due to this, how many of you are aware of what it is? Do you know what Professional tax is and why you have to pay it? If not, then this article is a good place to start! Here’s a look at how and why professional tax is deducted from your salary. What is Professional Tax? Professional tax is a special tax levied by respective state governments on individuals who make a living via any profession or occupation. Additionally, you must not take Professional tax for its word meaning and suppose that only professionals need to pay this tax. Rather, it is an umbrella term that includes the tax that someone has to pay because they are employed in any profession. Even employees working for firms and people owning businesses need to pay this tax. Therefore, in no way is the Professional Tax just for doctors, engineers or lawyers...

Professional tax is deducted by the employer from the employee. When I first joined a private firm I was paid a very little salary. So, I was bummed when Rs. 200 was deducted from my salary which I earned. Later when I checked the payslip I realised that it was a professional tax which was deducted from my salary. At that time, I was pretty shocked since Rs. 200 was an amount which I didn’t want to let go of. Later I realised why professional tax is deducted which helped me clear my doubts. So, I will explain my perspectives in brief. Pay your utility bills on time with NoBroker Utility Payment services and get rewards and assured rewards Need any legal assistance? Get a free consultation with expert lawyers at NoBroker and be on the right track! Why professional tax is deducted from salary? Professional tax is a tax levied by the state government. This tax is one source of revenue for the Government and is deducted from every employee for the betterment of professionals in every state. Thus, professional tax is deducted from salary. The maximum amount of professional tax is not more than Rs. 2,500 annually. Who is supposed to pay professional tax? • Companies and Business Firms • Limited Liability Partnerships (LLP) • Corporations • Co-op Societies and Associations • Hindu Undivided Family • Clubs • Lawyers and Legal practitioners • Contractors • Architects • Engineers • Insurance agents • Chartered Accountants (CA) • Company Secretary (CS) • Surveyors • Tax consultants •...

Working as a salaried employee in India, you may have come across professional tax on salary being deducted from your total compensation every year. It is an important tax that helps support the development of the nation and the budget of the government. If you aren’t very familiar with the tax on salary concept or have recently joined the workforce, this blog will guide you through everything you need to know about professional tax. Let’s begin with the basics: What is Professional Tax? Professional tax on salary is a tax imposed by the state government on individuals who are engaged in any profession, trade, calling, or employment. It is a form of indirect tax, which means that it is paid by the individual but collected by the employer. The tax is collected on a monthly basis and is based on the employee's salary. Who is Liable to Pay Professional Tax? Professional tax on salary is levied on all individuals who are earning an income from any profession, trade, calling or employment. This includes salaried employees, self-employed individuals, freelancers, and business owners. The tax is deducted from the salary of salaried individuals by their employer and self-employed individuals are responsible for paying the tax themselves. Purpose of Professional Tax The purpose of professional tax is to generate revenue for the state government. The funds collected through tax deduction on salary are used for various government programs and initiatives, such as education, healthcar...