Professional Tax Registration
Professional Tax is the tax levied by different state governments of India on the salaried persons working in government or non-government entities or practicing professions like Medicine, Law, Chartered Accountancy etc. or carrying out any other form of business. All these working professionals need to pay the professional tax.
The professional tax is imposed at the state level. Different states have different rates and methods of collection. The professional tax is not imposed in all the Indian states. The states in which professional tax is imposed are West Bengal, Tripura, Telangana, Tamil Nadu, Sikkim, Odisha, Meghalaya, Madhya Pradesh, Maharashtra, Kerala, Karnataka, Gujarat, Chhattisgarh, Assam, Andhra Pradesh etc.
The employers deduct the professional tax from the salary of the employees and the same is deposited with the state government. Professional tax is levied by the Municipal Corporation of a particular state and majority of the Indian states impose this tax. For the State Government, the professional tax is an important source of revenue and it helps them in implementing schemes for the welfare and development of the region.
Professional tax is also paid by staff of private companies. It is mandatory to pay professional tax. The professional tax is charged as per income slabs of the state government. The amount of professional tax paid during the year is allowed as deduction under the income tax act.
After recruiting the staff in a company, the registration of the professional tax is necessary within 30 days in case of salaried personnel and in case of professionals, it should be within 30 days from the beginning of the practice. The professional tax is deducted from the wages or salaries paid to the employees. The amount deducted for the professional tax varies from state to state but it is not more than 2500 rupees annually in any of the Indian states.
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What You Required To Know
If the employee changes his or her state and starts working in any other Indian state, than he or she needs to register in that state for professional tax again. The professional tax rate varies from state to state. Majority of the small business owners find it difficult to fulfill the strict requirements of the professional tax. Not all states impose this tax.
You have to pay the tax on time unless you will face penalties. For example - If you are living in Maharashtra and not paying the professional tax on time, you need to pay penalty of 10% of the amount owed to you. In the case of more delay, you need to pay 2 rupees each day.
Slab Rates and Profession Tax around India
West Bengal Professional Tax
In the West Bengal, the Professional tax is levied under the west Bengal state tax on Professions, Trades, Callings and Employment Act, 1979. The professional tax Slab rates in west Bengal are as follows –
Monthly salary Amount payable in west Bengal Upto Rs.10,000 Nil Rs.10001 to Rs.15000 Rs.110 per month Rs.15001 to Rs.25000 Rs.130 per month Rs.25001 to Rs.40000 Rs.150 per month Rs.40000 & above Rs.200 per month
Andhra Pradesh Professional Tax
In the Andhra Pradesh, professional tax is levied under the Andhra Pradesh tax on Professions, Trades, Callings and Employment Act, 1987. The professional tax Slab rates in Andhra Pradesh are as follows –
Monthly salary Amount payable in Andhra Pradesh Upto Rs.15000 Nil Rs.15001 to Rs.20000 Rs.150 per month Rs.20001 & above Rs.200 per month
Gujarat Professional Tax
In Gujarat, Professional tax is governed by the Gujarat Municipal Corporations, Panchayats, Municipalities and State tax on Professions, Traders, Callings & Employment act, 1976. The professional tax Slab rates in Gujarat are as follows –
Monthly salary Amount payable in Gujarat Less than Rs.5999 Nil Rs.6000 – Rs.8999 Rs.80 per month Rs.9000 – Rs.11999 Rs.150 per month Rs.12000 & above Rs.200 per month
Maharashtra Professional Tax
The Maharashtra State tax is governed by the Maharashtra state tax on Professions, Trades, Calling and Employment Act, 1975. The professional tax Slab rates in Maharashtra are as follows –
Monthly salary Amount payable in Maharashtra Less than Rs.7500 Nil Rs.7501 to Rs.10000 Rs.175 per month Rs.10001 & above Rs.200 per month except month of February
Note – Women who earn salary upto Rs.10000 per month are exempted to pay professional tax.
Tamil Nadu Professional Tax
In the Tamil Nadu, the professional tax is levied under the Municipalities, Town Panchayats, and Municipal Corporation Rules, 1988. The professional tax Slab rates in Tamil Nadu are as follows
Monthly salary Amount payable in Tamil Nadu (Half yearly) Upto Rs.21000 Nil Rs.21000 to Rs.30000 Rs.135 Rs.30001 to Rs.45000 Rs.315 Rs.45001 to Rs.60000 Rs.690 Rs.60001 to Rs.75000 Rs.1025 Rs.75001 & above Rs.1250
Karnataka Professional Tax
In the Karnataka, the professional tax is levied under the Karnataka tax on Professions, Trades, Callings and Employment Act, 1976. The professional tax Slab rates in Karnataka are as follows
Monthly salary Amount payable in Karnataka Less than Rs.15000 Nil Rs.15000 & above Rs.200 per month
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