562702total sites visits.

      Professional Tax

      Monday, February 3rd, 2014 Amritesh one response

      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.

      Professional Tax Rates for the Financial Year 2017-18. Click on the Link below:

      Professional Tax For The Financial Year 2017-18

       

      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.

      www.amritfinaa.blogspot.com
      badge
      mm
      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.
      Amritesh on FacebookAmritesh on GoogleAmritesh on InstagramAmritesh on LinkedinAmritesh on PinterestAmritesh on TwitterAmritesh on Youtube

      Leave a Reply

      Your email address will not be published. Required fields are marked *

      Leave a Reply

      1 Comment on "Professional Tax"

      Notify of
      avatar
      Sort by:   newest | oldest | most voted
      Uptra
      Guest

      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.

      wpDiscuz
      shares