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      Professional Tax For The Financial Year 2017-18

      Wednesday, April 12th, 2017 Amritesh 52 responses

      Professional Tax For Current Financial Year

      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. The tax has to be collected and deposited as per the timeline provided by the respective State Government. In case, One fails to do so, penalty and late fee would be applicable.

      The Tax may be paid to the Government on Monthly, Semi Annually or Annually basis depending on nature of business and the respective State Laws. Professional Tax Return needs to be filed at the end of the Financial Year.

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

      Recommendations have been made to enhance the Professional Tax rate which was last revised in 1988. But it will take sometime before the same is implemented. I have added the States which levy Professional Tax do update in case I have missed out on any or any additional details need to be included.

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

      Andhra Pradesh Professional Tax

      Assam Professional Tax

      Bihar Professional Tax

      Chattisgarh Professional Tax

      Goa Professional Tax

      Gujarat Professional Tax

      Jharkhand Professional Tax

      Karnataka Professional Tax

      Kerala Professional Tax

      Madhya Pradesh Professional Tax

      Maharashtra Professional Ta

      Meghalaya Professioal Tax

      Orissa Professional Tax

      Tamil Nadu Professional Tax

      Telangana Professional Tax

      Tripura Professional Tax

      West Bengal Professional Tax 

      Professional Tax Non Applicable States

       Sikkim

      Professional Tax levied on Business Houses.

      Exemption from Paying Professional Tax (As per the Act)

       Any person suffering from a permanent physical disability (including blindness)

       Parents or guardian of any person who is suffering from mental retardation.

      Persons who have completed the age of 65 years.(60 years in case of Karnataka)

      Parents or guardians of a child suffering from a physical disability as specified in clause (C) w.e.f 1.10.1996.

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      Amritesh is an experienced professional in the field of HR, Finance and Compliance. He is currently working in the IT Industry with an US based firm. He took up Blogging as a hobby which eventually turned into passion. He primarily focuses on topics related to Personal Finance, HR, Compliance and Technology.
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      52 Comments on "Professional Tax For The Financial Year 2017-18"

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      Irfana
      Guest

      professional tax is decuted on take home salary or net salary please clarifiy .

      Vishwaradhya
      Guest

      Sir please comment about PT exemption for Educational institutions in Karnataka and PT for teachers getting salary more than 15000/-

      shaik ismail
      Guest

      I need Maharastra State tax on Profession Latest Schedule – I list (w.e.f 01.04.2017)

      Rakesh
      Guest

      Hi,

      As per PT slab of Tamil Nadu it is defined as per jurisdiction and different slab applies to each jurisdiction.

      Pratik
      Guest

      Are we required to pay profession tax in maharashtra for fy2017-18 in view of gst roll-out on 1st july

      shanthikumar
      Guest

      HI sir iam shanthikumar has an accountant there is samll organization how to calculate pt and basic salary other vs gross salary

      M Mahato
      Guest

      Nice Writting.

      Mohan Ramchandra Mithbaokar
      Guest
      Mohan Ramchandra Mithbaokar

      Dear Mr. Amritesh,
      U deserve thanks for giving tax rates of various states. The info has come as a ready reckener for us. I would like to request that you please give the forms/procedure for registration of NGOs, Co-op. Soceities, etc.

      shah jignesh
      Guest

      If any institute cut your professional tax more than as per govt. rule to whom we complain?

      NANABHAU KASHID
      Guest

      good information

      Abhijeet Akshay Singh
      Guest
      Abhijeet Akshay Singh

      I am working in a company named MaRS Planning and Engineering Services. This company is mainly of Ahmedabad, Gujarat.
      Also, this company having its branch in Ranchi, Jharkhand.
      I am in Ranchi branch.

      I wanted to ask that whether I have to pay the Professional Tax according to Gujarat’s Government rules or Jharkhand Government rules?

      dheeraj sahani
      Guest

      Pt is calculated on gross salary or take home salary

      Tarak Shaw
      Guest

      our establishment is working at states of north east. may I know the present slab of Professional Tax.

      Geeta Pilkhwal
      Guest

      Hi,

      I have one question in slab rate. As per your article eg-Assam PT is 0-10000 is”0″ & 10001-14999 is “150” but the sheet i have received from my company compliance is 0-10000 is “0” but 10001-15000 is “150”.Which one is correct to be considered.

      s
      Guest

      Will professional tax (esp Maharashtra) and other states be abolished due to GST?
      Also if there is no more business activity conducted how do we surrender professional tax ?

      s
      Guest

      will professional tax be abolished after GST implementation ?

      What is the process to surrender Professional tax number if the business activity is stopped ?

      Keyur gada
      Guest

      This professional tax wil then got a worker to be deducted in return file right

      palanki neelima
      Guest

      June -17 professional tax we have paid through online or e-payment now shall we pay same like last month online payment

      Vikas
      Guest

      Kya PT return h.
      Or ye tax basic salary par h ya overall gross salary pr.

      GANESH
      Guest

      LAST DATE FOR P.T. PAYMENT

      Apoorva
      Guest

      Dear Sir,
      Is required to deduct and remit PT on Salary from July 2017.

      Anantharamaiah.n
      Guest

      we have to apply for professional Tax New registration. How and procedure in Tamilnadu

      please give me suggestion in this regard

      Yours faithfully
      Anantharamaiah

      Pitambar patra
      Guest

      if worker more then 3 day absent then professional tax is decuted or not

      Sowmya
      Guest

      What is the minimum salary to deduct the Professional Tax?

      Sivaji Devarala
      Guest

      What is the Interest rate applicable for late payment of PT EPF and ESI.
      Please do let me know.

      Dony Joseph
      Guest

      In a news paper tax talk they says HRA is exempted from prof tax in kerala. is it right?

      Anand
      Guest

      Hi Amritesh, how can i apply for PT Tax Registration in Kerala. Is here an online option available?s P Tax registration mandatory for sole proprietorship with 0 or 1 employee?

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