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Monday, 3 February 2014

Professional Tax

Professional tax is a tax levied by the various State Governments of India on salaried individuals, working in government or non-government entities, or in practice of any profession, including chartered accountants, doctors, lawyers etc or carry out some form of business. This form of tax is in practice for a long time and States were conferred the power of leveling the Tax under Clause (2) of Article 276. The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. However the maximum Professional Tax that can be levied by any State till date is Rs 2500/-. The total amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act. The professional tax is a source of revenue for the State Governments which helps the different in implementing schemes for the welfare and development of the region.
Professional Tax is deducted by the employers from the salary of the salaried employees and same is deposited with the State Government. For other individuals, they have to directly pay it to the Government or through the Local Bodies appointed to do so.
Let’s look at the Professional Tax Slabs of few of the States which levy the Professional Tax:-

Andhra Pradesh

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to  15,000/-
Nil
15,001- 20,000/-
150
Above 20,001/-
                             200

Gujrat

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to  5,999/-
Nil
 6,000- 8,999/-
                              80
 9,000- 11,999/-
                              150
Above  12,000/-
                              200

Karnataka

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to 10,000/-
Nil
10,001-14,999/-
150
Above 15,000/-
                             200

Madhya Pradesh

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to 12,500/-
Nil
12,501-14,999/-
125
Above 15,000/-
                               208*

Maharashtra

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to 5,000/-
Nil
5,001- 10,000/-
175
Above 10,001/-
                            200**

Tamil Nadu

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to 3,500/-
Nil
 3,501- 5,000/-
                              20
5,001- 7,500/-
                              40 (approx)***
 7,501- 10,000/-
                              85
 10,001- 12,500/-
                              127 (approx)****
Above  12,501/-
                              182.50

West Bengal

Monthly Salary (Rs)
Professional Tax Levied (P.M) (Rs)
Up to 7,000/-
Nil
7,001- 8,000/-
                              50
8,001- 9,000/-
                              90
9,001- 15,000/-
                              110
15,001- 25,000/-
                              130
25,001- 40,000/-
                              150
Above  40,001/-
                              200

Note : *Madhya Pradesh government levies tax @ `208 for 11 months and `212 for 1 month.
**Maharastra Government levies tax @ `200 for 11 months and `300 for 1 month.
***Tamil Nadu levies tax bi yearly which amounts to `235 and **** which amounts to `760 respectively.
Professional Tax is still not levied in Delhi.

1 comment:

  1. As far as anyone is concerned the main zone where it aides is if youre applying for an advance. In the event that you go purchase a house the moneylender will need to see your assessment forms to check salary and the capacity to reimburse the credit. Make 75k however report just 30k, the moneylender will see you just made 30k and likely wont endorse you for the credit.

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