Professional tax is a tax levied on persons earning income either by way of practicing profession, employment, trade etc. It is levied by the State Government or the Union Territory and not by the Central Government.
Applicability of Professional Tax
Professional tax is applicable to the following-
- Individual
- Hindu Undivided Family
- Company
- Firm
- Co-operative Society
- Association of Person
- Body of Individuals
Amount of Professional Tax
Since the tax is levied by the State Government, the amount of professional tax to be deducted varies from State to State. But the maximum professional tax leviable is restricted to Rs. 2,500/- on any person in a financial year.
The amount at which professional tax is payable in various states is given below-
|
State |
Income per Month |
Tax Rate/Tax Amount (p.m.) |
|
Andhra Pradesh |
Less than Rs. 15,000 |
Nil |
|
Rs. 15,000 to less than Rs. 20,000 |
Rs. 150 |
|
|
Rs. 20,000 and above |
Rs. 200 |
|
|
Gujarat |
Up to Rs. 5999 |
Nil |
|
Rs. 6000 to Rs. 8999 |
Rs. 80 |
|
|
Rs. 9000 to Rs. 11999 |
Rs. 150 |
|
|
Rs 12000 and above |
Rs. 200 |
|
|
Karnataka |
Up to Rs. 15,000 |
Nil |
|
Rs. 15,001 onwards |
Rs. 200 |
|
|
Kerala (Half yearly income slabs and half yearly tax payment) |
Up to Rs.11,999 |
Nil |
|
Rs.12,000 to Rs.17,999 |
Rs.120 |
|
|
Rs.18,000 to Rs. 29,999 |
Rs.180 |
|
|
Rs.30,000 to Rs. 44,999 |
Rs.300 |
|
|
Rs.45,000 to Rs. 59,999 |
Rs.450 |
|
|
Rs.60,000 to Rs. 74,999 |
Rs.600 |
|
|
Rs.75,000 to Rs. 99,999 |
Rs.750 |
|
|
Rs.1,00,000 to Rs. 1,24,999 |
Rs.1000 |
|
|
Rs.1,25,000 onwards |
Rs.1250 |
|
|
Maharashtra |
Up to Rs. 7,500 |
Nil (for male) |
|
Up to Rs. 10,000 |
Nil (for female) |
|
|
From Rs. 7,500 to Rs. 10,000 |
Rs. 175 (for male) |
|
|
Rs. 10,000 onwards |
Rs. 200 for 11 months + Rs. 300 for 12th month |
|
|
Telangana |
Up to Rs. 15,000 |
Nil |
|
Rs.15,001 to Rs.20,000 |
Rs. 150 |
|
|
Rs.20,001 onwards |
Rs.200 |
|
|
Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.) |
Nil |
|
|
Over 5 years (For professionals such as legal practitioners, CA, architects, etc.) |
Rs. 2,500 (per annum) |
|
|
West Bengal |
Up to 10,000 |
Nil |
|
10,001 to 15,000 |
Rs. 110 |
|
|
15,001 to 25,000 |
Rs. 130 |
|
|
25,001 to 40,000 |
Rs. 150 |
|
|
40,001 and above |
Rs. 200 |
Payment of Professional Tax
- Self Employed Persons - The persons who carry out their profession or trade are required to pay professional tax themselves to the State Government.It can either be paid monthly or annually at their choice. Further, self-employed taxpayers are required to obtain a Certificate of Enrolment from the prescribed authority in the manner prescribed for the purpose of remittance of professional tax.
- Salaried Employees or Wage Earners - The employer is liable to deduct professional tax on monthly basis from the salary or wages in accordance with the slab applicable and deposit the same to the State Government. In this case, the employer is required to obtain a Certificate of Registration from the prescribed authority in order to remit the professional tax deducted.
Deduction under Income Tax
The professional tax paid by an employee is allowed as a deduction from his/her gross salary income under Section 16 (iii) of the Income Tax Act 1961.
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