Professional Tax Rates For The FY 2019-20
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 Professional tax rates is based on the Income Slabs set by the respective State Governments. However, the maximum Professional Tax that may be levied by any State has been capped at 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 Rates For The Financial Year 2019-20 for the respective States has been discussed in this post.
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 2019-20, 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. Also few more States have been added to the list. In case of any clarification, please get in touch with the Commercial Tax Department of the respective State.
Recommendations have been made to enhance the Professional Tax rate which was last revised in 1988. I have included the States which levy Professional Tax. However, in case I have missed out anything same will be updated later.
Let’s look at the Professional Tax Rates For Financial Year 2019-20 (State Wise):-
Note: Some Figures in Decimals may be rounded off to the nearest Rupee.
Exemption from Paying Professional Tax (As per the Act)
Any person suffering from a permanent physical disability (including blindness) depending on provisions of PT of the respective State.
Parents or guardian of any person who is suffering from mental retardation, if the PT Act provides provision for the same.
Persons who have completed the age of 65 years. Subject to exemption provided by respective State. (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, applicable as per State provisions.
This article is for informational purpose only. Readers are advised to research further to have more clarity on the topic. It is very important to do your own analysis and consult your Tax Consultant before arriving at any conclusion.