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Saturday, 2 April 2016

Professional Tax For The Financial Year 2016-17

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.

Click on the Link below to know about some of the major announcements made in the recent Budget Speech. 


For the Financial Year 2016-17, few states have made some alteration which has been updated in this post. Any further changes or revision, I come to know will be updated at the earliest.

Let’s look at the Professional Tax Slabs of the States which levy the Professional Tax:-

Andhra Pradesh

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

Assam

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 10,000/-
Nil
Rs 10,001- Rs 14,999/-
Rs 150
Rs 15,000- Rs 24,999/-
Rs 180
Rs 25,000/- or Above
*Rs 208 & 212

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Bihar

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 25,000/-
Nil
Rs 25,001-Rs 41,666/-
Rs 83.33
Rs 41,667-Rs 83,333/-
Rs 166.67
Rs 83,334/- or Above
Rs 208.33

Chattisgarh (Exempted as per the Notification dated 31/03/2011)

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 12,500/-
Nil
Rs 12,501-Rs 16,667/-
Rs 150
Rs 16,668-Rs 20,833/-
Rs 180
Rs 20,834-Rs 25,000/-
Rs 190
Rs 25,001/- or Above
Rs 200

Goa

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 15,000/-
Nil
Rs 15,001-Rs 25,000/-
Rs 150
Rs 25,001/- or Above
Rs 200

Gujarat

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

Jharkhand

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 25,000/-
Nil
Rs 25,001-Rs 41,666/-
Rs 100
Rs 41,667-Rs 66,666/-
Rs 150
Rs 66,666-Rs 83,333/-
Rs 175
Rs 83,334/- or Above
*Rs 208

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Karnataka

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

Kerala

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 1,999/-
Nil
Rs 2,000- Rs 2,999/-
Rs 20(120)
Rs 3,000- Rs 4,999/-
Rs 30(180)
Rs 5,000- Rs 7,499/-
Rs 50(300)
Rs 7,500- Rs 9,999/-
Rs 75(450)
Rs 10,000- Rs 12,499/-
Rs 100(600)
Rs 12,500- Rs 16,666/-
Rs 125(750)
Rs 16,667- Rs 20,833/-
Rs 166(1000)
Rs 20,884/- or Above
Rs 208(1250)

Payable Semi Annually. In bracket Professional Tax payable Semi Annually is mentioned.

Madhya Pradesh

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 15,000/-
Nil
Above Rs 15,001/-
*Rs 208 & Rs 212

*Madhya Pradesh levies Professional Tax @ Rs 208 for 11 months and Rs 212 for the last month.

Maharashtra

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 7,500/-
Nil
Rs 7,501-Rs 10,000/-
Rs 175
Above Rs 10,001/-
*Rs 200 & Rs 300

*Maharashtra Government levies Professional Tax @ Rs 200 for 11 months and Rs 300 for the last month.
**Women who earn Salary up to Rs 10,000/- per month are exempted from paying Professional Tax.

Meghalaya

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 4,166/-
Nil
Rs 4,167- Rs 6,250/-
Rs 16.50
Rs 6,251- Rs 8,333/-
Rs 25
Rs 8,334- Rs 12,500/-
Rs 41.50
Rs 12,501- Rs 16,666/-
Rs 62.50
Rs 16,667- Rs 20,833/-
Rs 83.33
Rs 20,834- Rs 25,000/-
Rs 104.16
Rs 25,001/- Rs 29,166/-
Rs 125
Rs 29,167/-Rs 33,333/-
Rs 150
Rs 33,334/- Rs 37500/-
Rs 175
Rs 37,501/- Rs 41,666/-
Rs 200
Above Rs 41,667/-
                         *Rs 208


*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Orissa

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 13,304/-
Nil
Rs 13,305- Rs 25,000/-
Rs 125
Rs 25,001/- or Above
*Rs 200 & Rs 300

*Professional Tax will be payable @ Rs 200 for first 11 months and Rs 300 in the last month.

Tamil Nadu

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 3,500/-
Nil
Rs 3,501-Rs 5,000/-
Rs 16.66(100)
Rs 5,001-Rs 7,500/-
Rs 40 (235)
Rs 7,501-Rs 10,000/-
Rs 85(510)
Rs 10,001-Rs 12,500/-
Rs 126.67(760)
Above Rs 12,501/-
Rs182.50 (1095)

Collectible Semi- Annually. In bracket Professional Tax payable Semi Annually is mentioned.

Telangana

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

Tripura

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 5,000/-
Nil
Rs 5,001- Rs 7,000/-
Rs 70 (420)
Rs 7,001- Rs 9,000/-
Rs 120(720)
Rs 9,001- Rs 12,000/-
Rs 140(840)
Rs 12,001- Rs 15,000/-
Rs 190(1140)
Rs 15,001/- or Above
Rs 2496(208)

Collectible Semi-Annually. Amount given in bracket is the Professional Tax payable Semi Annually.

West Bengal

Monthly Salary
Professional Tax Levied (P.M)
Up to Rs 8,500/-
Nil
Rs 8,501-Rs 10,000/-
Nil (from 01/08/2016)
Rs 10,001-Rs 15,000/-
Rs 110
Rs 15,001-Rs 25,000/-
Rs 130
Rs 25,001-Rs 40,000/-
Rs 150
Above Rs 40,001/-
Rs 200

States and Union Territories where Professional Tax is Not Applicable

Arunachal Pradesh
Andaman & Nicobar
Chandigarh
Dadra & Nagar Havelli
Daman & Diu
Delhi
Haryana
Himachal Pradesh
Jammu & Kashmir
Lakshadweep
Nagaland
Punjab
Rajasthan
Uttaranchal
Uttar Pradesh

Exemption from Paying Professional Tax (Subject to exemption approved by the respective State)
  1.  Any person suffering from a permanent physical disability (including blindness)
  2.  Parents or guardian of any person who is suffering from mental retardation.
  3. Persons who have completed the age of 65 years.(60 years in case of Karnataka)
  4. Parents or guardians of a child suffering from a physical disability as specified in clause (C) w.e.f 1.10.1996.

37 comments:

  1. Are Pensioners liable to Profession Tax? Since it is levied on Salaried Employees or Professionals doubt arises whether a Pensioner is an employee? Armed Forces Personnel are exempt from Profession Tax, but are the armed forces Personnel who after hanging their Uniform reciept of only Pension are liable to Profession Tax?

    ReplyDelete
    Replies
    1. No. Professional Tax is not applicable.

      Delete
  2. if 2500 Rs is deducted as Professional Tax in current AY year & total income is 210000 . Can i claim 2500 for refund during ITR, as total income (210000 + 2500) is less than 250000.

    pls suggest

    ReplyDelete
    Replies
    1. Professional Tax is levied by the respective State and is different from Income Tax. Hence, you cannot claim refund on account of PT deduction irrespective of your income.

      Delete
  3. How to Exemption person suffering from a permanent physical disability?

    ReplyDelete
    Replies
    1. PT is a state subject. Hence provision laid out by the respective State needs to be followed, Maharashtra does provide such exemption (U/S 27A of the Maharashtra Profession Tax Act, 1975). Individual needs to forward a certificate from the Competent Authority confirming his/her disability to the employer. The Employer will forward the same to the Assessing Authority.

      Delete
  4. whether in Gujarat state P Tax is exempted for Senior Citizen?

    ReplyDelete
    Replies
    1. No such exemption is available for Senior Citizens as of now.

      Delete
  5. plese help me parliment member & z.p.president P Tax how many diducted

    ReplyDelete
    Replies
    1. Members of Parliament (MP) do not receive remuneration in form of Salary, it is regarded as Income from Other Sources. For Government officials like Minsters, President and other Government Servants income is taxable as "Income from Salary". So likewise PT may be levied on the same.

      Delete
  6. Sir,
    I am working as a lecturer in two different college's of same institution situated in Gujarat with salaries 23k & 8k resp. So my employer deduct PT from both the salaries i.e. ₹200 & ₹80 p.m. so my total amount of PT deduction becomes more than ₹2500 p.a., it is legal or illegal?

    ReplyDelete
    Replies
    1. Inform your employer about the same. The Employer will forward the same to the Assessing Authority and they will help you with the same.

      Delete
  7. what about proffesional tax for work from home concept

    ReplyDelete
    Replies
    1. It remains the same irrespective of whether you work from home or office.

      Delete
  8. This comment has been removed by the author.

    ReplyDelete
    Replies
    1. On the amount received for the concerned month.

      Delete
  9. Money is deducted from my salary in the form of profession tax of Rs 510. But I am from west Bengal and tax deduction for West Bengal is Rs 130. So, Why this extra amount is deducted from my salary?

    ReplyDelete
    Replies
    1. You may ask your employer for clarification on the same. The maximum PT which may be deducted is Rs2,500/- per annum depending of income slab.

      Delete
  10. HOW IS CALCULATING SALARY IS IT INCLUDING HRA, PF, WF ETC...

    ReplyDelete
    Replies
    1. PT is calculated on Gross Salary.

      Delete
  11. sir, if some employees working in probation period in such case can they are applicable for professional tax slab pls. suggest.

    ReplyDelete
  12. Sir, I am director of a Pvt. Ltd. company based in Pune, Maharashtra. I am not getting any remuneration from the compabny. Do I still have to pay professional tax of State of Maharashtra ? If yes, how much amount per year ?

    ReplyDelete
    Replies
    1. The Pvt Ltd company will have to pay professional tax but if you are not getting any remuneration as an individual, you are not required to pay.

      Delete
  13. Is Professional Tax exempted for Persons with Disability in Madhya Pradesh ? kindly share the link

    ReplyDelete
    Replies
    1. No such exemption is available as per my knowledge.

      Delete
  14. Hi I am freelance engineer and work out side Maharashtra but I live in Mumbai do I have to pay professional tax

    ReplyDelete
    Replies
    1. If the State where you are plying your trade levies PT, then you will be required to pay the same.

      Delete
  15. I am contract employee in the company in Maharshtra. Monthly salary was Rs 40000/- and was in employment for six month in this year. Employer has deducted every month Rs 200/- even though I am not employed now do I still have to pay total amount of Rs 2500/- for this year

    ReplyDelete
  16. What is the professional tax slab for the Software company of Gujarat

    ReplyDelete
  17. PT collected by PVT com and not deposited in 6 mnths ..whats the liablity of compy now ?

    ReplyDelete
  18. There is error in Kerala State PT 2nd last slabs ends at 20833 and last starts at Rs 20884 in between people with salary Rs 20834 to Rs 20883 are missing.

    Also can you share respective link of government website so that once refer.

    ReplyDelete
  19. There is error in Kerala State PT 2nd last slabs ends at 20833 and last starts at Rs 20884 in between people with salary Rs 20834 to Rs 20883 are missing.

    Also can you share respective link of government website so that once refer.

    ReplyDelete
  20. Dear Sir
    i asked one quri is i have gross salary in the month 20k but i am 22 days absent so deducted the professional tax

    ReplyDelete
  21. I worked in Tamilnadu for a company who deducted 2500 INR as professional tax effective my October payslip. I have now joined another company in Telangana where they have started monthly deductions of Rs. 200. I wanted to know how I should recover the additional amount paid through the Tamilnadu company as they have deducted the amount in advance.

    ReplyDelete