Hi All,
A friend of mine is working for a small size IT firm in Pune.
they have deducted the profession Tax from the employees' salary but not paid the same to the government.
Also they have mentioned the same in the Form-16 despite have not paid the same.
What are the consequences of the same and as an employee what action can they take against the employer who does not follow the statuary compliance.
Can the employer come up with disciplinary action against the employees who oppose his bad practices.
Does law protect employees from employer's such actions.
Can employee get back the undeposited amout from the employer and file the revised IT Return.
Please guide us on the same.
Regards,
Reena
A friend of mine is working for a small size IT firm in Pune.
they have deducted the profession Tax from the employees' salary but not paid the same to the government.
Also they have mentioned the same in the Form-16 despite have not paid the same.
What are the consequences of the same and as an employee what action can they take against the employer who does not follow the statuary compliance.
Can the employer come up with disciplinary action against the employees who oppose his bad practices.
Does law protect employees from employer's such actions.
Can employee get back the undeposited amout from the employer and file the revised IT Return.
Please guide us on the same.
Regards,
Reena
Dear Reena,
The payment of professional Tax is state specific. No way employee will be penalised. You made it very clear that, the deduction made and such deduction shown in Form 16 - safe situation. But, the employer is ultimate responsible to pay the tax to govt Authority.
Non - payment to government will be penalised and the same will be recovered from employer as revenue recovery.
Once deducted will not be refunded to employee.
Stay in touch.
Chandrasekaran.V
From India, Madras
1The payment of professional Tax is state specific. No way employee will be penalised. You made it very clear that, the deduction made and such deduction shown in Form 16 - safe situation. But, the employer is ultimate responsible to pay the tax to govt Authority.
Non - payment to government will be penalised and the same will be recovered from employer as revenue recovery.
Once deducted will not be refunded to employee.
Stay in touch.
Chandrasekaran.V
From India, Madras
If Employer Not Paid Or Paid Very Less Amount Professional Tax, To Whom Should Be Informed? What Are Penalties For That?
From India, Mumbai
From India, Mumbai
Sir,
Can u guide me
1) If someone joins in middle of month then what should be his professional tax deduction?
E.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction? His earlier employer would deduct Rs 300 as Professional tax. While his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can you throw light on how such situations should be handled? There would be many variations to this case.
I have taken Maharashtra state for calculation of Professional Tax
2) If someone joins the company, the person has 2-3 exp there is no deduction regarding Professional tax, P.F, E S I. in his salary slip? Then how to deduct Professional Tax.
3)Company had not paid the professional tax for the 2 previous years, even though they had employees and paying the salary, even they are not having the professional tax registration, this year they had registered the company under professional tax,
now do they have to specify to officials about the previous year fault?
what will be its implication and fines according Maharashtra State?
Mail me sunitakby @rediffmail.com urgently
Thank you
Sunita
Can u guide me
1) If someone joins in middle of month then what should be his professional tax deduction?
E.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction? His earlier employer would deduct Rs 300 as Professional tax. While his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can you throw light on how such situations should be handled? There would be many variations to this case.
I have taken Maharashtra state for calculation of Professional Tax
2) If someone joins the company, the person has 2-3 exp there is no deduction regarding Professional tax, P.F, E S I. in his salary slip? Then how to deduct Professional Tax.
3)Company had not paid the professional tax for the 2 previous years, even though they had employees and paying the salary, even they are not having the professional tax registration, this year they had registered the company under professional tax,
now do they have to specify to officials about the previous year fault?
what will be its implication and fines according Maharashtra State?
Mail me sunitakby @rediffmail.com urgently
Thank you
Sunita
Dear Sunita,
Please find my comments below in blue colour :
[QUOTE=Sunita HR;777191]Sir,
Can u guide me
1) If someone joins in middle of month then what should be his professional tax deduction?
E.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction? His earlier employer would deduct Rs 300 as Professional tax. While his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can you throw light on how such situations should be handled? There would be many variations to this case.:- If the employee works full year with A employer from March - February then only A employer can deduct 300 Rs. from Employee's salary as Professional Tax.( As perMaharashtra Rule - 2500/annum ). As in case of B employer as there is 1st month of the employee with employer B he can deduct only Rs. 200 as professional Tax.
I have taken Maharashtra state for calculation of Professional Tax
2) If someone joins the company, the person has 2-3 exp there is no deduction regarding Professional tax, P.F, E S I. in his salary slip? Then how to deduct Professional Tax. :- Profession Tax is deducted on Gross Salary so whatever salary you will be paying to employee the PT would be deducted on the same.
3)Company had not paid the professional tax for the 2 previous years, even though they had employees and paying the salary, even they are not having the professional tax registration, this year they had registered the company under professional tax,
now do they have to specify to officials about the previous year fault?
what will be its implication and fines according Maharashtra State? : Please check out with PT inspector/officer, only he could suggest on the same.
In case of any query please call - 9850401160
Best Regards,
Prashant
From India, Pune
Please find my comments below in blue colour :
[QUOTE=Sunita HR;777191]Sir,
Can u guide me
1) If someone joins in middle of month then what should be his professional tax deduction?
E.g. employee works for company A till February 14 & is paid Rs 15000/ as half month salary for February. He joins company B on 15th February and is paid Rs 20000/ as half month salary.
So what should be his Professional Tax deduction? His earlier employer would deduct Rs 300 as Professional tax. While his next employer would also deduct Rs 300 as Professional tax. This happens because the salary is not processed till end of month.
Can you throw light on how such situations should be handled? There would be many variations to this case.:- If the employee works full year with A employer from March - February then only A employer can deduct 300 Rs. from Employee's salary as Professional Tax.( As perMaharashtra Rule - 2500/annum ). As in case of B employer as there is 1st month of the employee with employer B he can deduct only Rs. 200 as professional Tax.
I have taken Maharashtra state for calculation of Professional Tax
2) If someone joins the company, the person has 2-3 exp there is no deduction regarding Professional tax, P.F, E S I. in his salary slip? Then how to deduct Professional Tax. :- Profession Tax is deducted on Gross Salary so whatever salary you will be paying to employee the PT would be deducted on the same.
3)Company had not paid the professional tax for the 2 previous years, even though they had employees and paying the salary, even they are not having the professional tax registration, this year they had registered the company under professional tax,
now do they have to specify to officials about the previous year fault?
what will be its implication and fines according Maharashtra State? : Please check out with PT inspector/officer, only he could suggest on the same.
In case of any query please call - 9850401160
Best Regards,
Prashant
From India, Pune
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