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Professional Tax

Professional Tax

Professional tax is an indirect tax who levied by the State government of India on income from profession. Professional income includes chartered accountant’s earning, lawyer’s earning, doctor’s income etc. It is also payable by members of staff employed who working in Private companies. It is imposed by the commercial department of state and also collected by them. An employee whose salary comes under taxable income, the tax amount by his employer is deducted from his salary and deposited with the government. Professional tax is described in article 276 of the Indian Constitution. Article 276 applies to profession, trades, calling and employments.

Penalties for non- compliance on professional tax payment

  • If late payment of profession tax then penalty will be 10% of the amount of the tax.
  • On late filing of return, penalty will be Rs. 1000 per return.
  • If filing of this return is delayed by 1 month from the due date then this penalty becomes Rs. 2000.

Know the basics

Exemptions from Professional Tax

The following individuals are exempted to pay professional tax:

  • Up to one year of standing in the profession not liable to pay professional tax.
  • Parents or guardians of individuals suffering from mental disability.
  • Members of the forces as defined in the Army Act. 1950, the Air Force Act. 1950 and the Navy Act 1957 including the members of auxiliary forces or reservists, serving in the state.
  • Person having completed age of 65 years.
  • Members of armed forces of union serving in the state.
  • Under the Mahila Pradhan Kshetriya Bachat Yojna of Directorate of small savings women exclusively engaged as agents.
  • Casual Worker

Documents Required for the registration of Professional Tax

  • A Passport size photo
  • PAN card of assesse
  • Aadhar Card
  • Electricity Bill or rent agreement
  • Cancelled cheque
  • Detail of business

Professional Tax Slab in Different States

State Income per Month Tax Rate/Tax Amount (p.m.)
Andhra Pradesh Less than Rs. 15,000 Nil
Rs. 15,000 to less than Rs. 20,000 Rs. 150
Rs. 20,000 and above Rs. 200
Gujarat Up to Rs. 5999 Nil
Rs. 6000 to Rs. 8999 Rs. 80
Rs. 9000 to Rs. 11999 Rs. 150
Rs 12000 and above Rs. 200
Karnataka Up to Rs. 15,000 Nil
Rs. 15,001 onwards Rs. 200
Kerala (Half yearly income slabs and half yearly tax payment) Up to Rs.11,999 Nil
Rs.12,000 to Rs.17,999 Rs.120
Rs.18,000 to Rs. 29,999 Rs.180
Rs.30,000 to Rs. 44,999 Rs.300
Rs.45,000 to Rs. 59,999 Rs.450
Rs.60,000 to Rs. 74,999 Rs.600
Rs.75,000 to Rs. 99,999 Rs.750
Rs.1,00,000 to Rs. 1,24,999 Rs.1000
Rs.1,25,000 onwards Rs.1250
Maharashtra Up to Rs. 7,500 Nil (for male)
Up to Rs. 10,000 Nil (for female)
From Rs. 7,500 to Rs. 10,000 Rs. 175 (for male)
Rs. 10,000 onwards Rs. 200 for 11 months + Rs. 300 for 12th month
Telangana Up to Rs. 15,000 Nil
Rs.15,001 to Rs.20,000 Rs. 150
Rs.20,001 onwards Rs.200
Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.) Nil
Over 5 years (For professionals such as legal practitioners, CA, architects, etc.) Rs. 2,500 (per annum)
West Bengal Up to 10,000 Nil
10,001 to 15,000 Rs. 110
15,001 to 25,000 Rs. 130
25,001 to 40,000 Rs. 150
40,001 and above Rs. 200