29 June 2009

Profession tax rates/slab for deduction from employees w.e.f. 01/07/2009

New Rates/Slab of Profession Tax  (P.T. Slab) to be deducted from salary and wages of employees. These rates are effective from 01/07/2009.*
Tax Liability on Salary/wages amount  Tax to be deducted
Up to Rs.5,000/- Nil
From Rs.5001/- to Rs.10,000/- Rs.175/ p.m.
From Rs10,001/- Rs.200/- p.m. except in Feb. Rs.300/-
The new rates are to be applied as per Maharashtra Tax Laws (Levy, Amendment and Validation) Act 2009.
Following persons are exempted from payment of profession-tax
  1. Member of Armed forces , Air force and Navy,
  2. Badli workers in Textile Industry,
  3. Women employed as agents in Mahila Pradhan Kshetriya Bachan Yogana or Director of Small Saving,
  4. Persons who have completed 65 years of age,
  5. Person suffering from specified physical disabilities subject of fulfilment of certain conditions and parents and guardians of such persons.
  6. Parents and Guardians of per suffering from mental retardation as specified in rule 32, which is certified by a psychiatrist, working in Government Hospital
* Also refer Trade Cir. No.32T dated 24/11/2009