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Professional Tax in India - Tax Slab FY 24 - 25 & FAQs

Updated on June 10, 2024 , 271328 views

professional tax is a tax levied at the state level in India. It is collected by the State Government by every individual who earns a living through mediums like trade, employment, or professional. Individuals who practice and earn through profession, such as a Company Secretary, Lawyer, Chartered Accountant, Cost Accountant, Doctor or are a Merchant/ Businessperson are liable to pay professional tax in some states of the country. Professional tax is payable by private company employees or by people who earn a salary in general.

Professional-Tax

Clause (2) of Article 276 of the Constitution of India provides the right to the State Government for levy and collection of professional tax or tax on the profession. Professional tax is levied through predetermined tax slabs and is paid on a monthly Basis. Some of the states which currently impose a professional tax in India are Maharashtra, Gujarat, Andhra Pradesh, Kerala, Tamil Nadu, Karnataka, Bihar, Assam, Madhya Pradesh, Telangana, Meghalaya, Odisha, West Bengal, Sikkim and Tripura.

Although the tax is levied depending upon the Income of the individual, the maximum amount any State can levy as Professional Tax is restricted to INR 2,500. The deductions of Professional tax are made under Section 16 of income tax Act, 1961. And, the balance amount shall be calculated as per the slabs applicable.

How to Calculate Professional Tax?

Individuals can calculate their Professional Tax Liability on the basis of the gross salary and tax slab prescribed by the state government levying Professional Tax. The slab rates differ from state to state.

For the illustration purpose, we have taken Andhra Pradesh for the Professional Tax rates-

  • Gross income up to INR 15,000 there will be no tax
  • For INR 15,001 to INR 20,000, it is INR 150 per month
  • For INR 20,001 and above, it is INR 200 per month

Professional Tax Exemption Clauses

The exemptions for the Professional tax are:

  • Parent or guardian of a physically challenged or mentally retarded child
  • A person suffering 40 percent or more of permanent physical disability or blindness
  • An assessee has completed 65 years of age. For the state of Karnataka, it is 60 years

*Note- The above provisions can vary in different states.*

State-wise Professional Tax Slab FY 24 - 25

Here's is the list of Professional Tax Slab for different states-

Professional Tax Slab in Maharashtra

Monthly salary Tax per month
Up to INR 7,500 for men NIL
Up to INR 10,000 for women NIL
From INR 7,500 to INR 10,000 INR 175
INR 10,000 and above INR 200 (INR 300/- for the month of February)

Professional Tax Slab in Tamil Nadu

Monthly salary Tax per month
Up to INR 21,000 NIL
From INR 21,001 to INR 30,000 INR 135
From INR 30,001 to INR 45,000 INR 315
From INR 45,001 to INR 60,000 INR 690
From INR 60,001 to INR 75,000 INR 1025
Above INR 75,000 INR 1250

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Professional Tax Slab in Karnataka

Monthly salary Tax per month
Up to INR 15,000 NIL
Above INR 15,000 INR 200

Professional Tax Slab in Andhra Pradesh

Monthly salary Tax per month
Up to INR 15,000 NIL
From INR 15,001 to INR 20,000 INR 150
Above INR 20,001 INR 200

Professional Tax Slab in Kerala

Monthly salary Tax per month
Upto INR 11,999 NIL
INR 12,000 to INR 17,999 INR 120
INR 18,000 to INR 29,999 INR 180
INR 30,000 to INR 44,999 INR 300
INR 45,000 to INR 59,999 INR 450
INR 60,000 to INR 74,999 INR 600
INR 75,000 to INR 99,999 INR 750
INR 1,00,000 to INR 1,24,999 INR 1000
Above 1,25,000 INR 1250

Professional Tax Slab in Telangana

Monthly salary Tax per month
Up to INR 15,000 NIL
From INR 15,001 to INR 20,000 INR 150
Above INR 20,000 INR 200

Professional Tax Slab in Gujarat

Monthly salary Tax per month
Up to INR 5,999 NIL
From INR 6,000 to INR 8,999 INR 80
From INR 9,000 to INR 11,999 INR 150
INR 12,000 and Above INR 200

Professional Tax Slab in Bihar

Monthly salary Tax per month
Upto INR 3,00,000 NIL
INR 3,00,001 to INR 5,00,000 INR 1000
INR 5,00,001 to INR 10,00,000 INR 2000
Above INR 10,00,001 INR 2500

Professional Tax Slab in Madhya Pradesh

Monthly salary Tax per month
Upto INR 2,25,000 NIL
INR 22,5001 to INR 3,00,000 INR 1500
INR 3,00,001 to INR 4,00,000 INR 2000
Above INR 4,00,001 INR 2500

Professional Tax Slab in West Bengal

Monthly salary Tax per month
Up to INR 10,000 Nil
INR 10,001 to INR 15,000 INR 110
INR 15,001 to INR 25,000 INR 130
INR 25,001 to INR 40,000 INR 150
Above INR 40,001 INR 200

Professional Tax Slab in Odisha

Monthly salary Tax per month
Upto INR 1,60,000 NIL
INR 160,001 to INR 3,00,000 INR 1500
Above INR 3,00,001 INR 2500

Professional Tax Slab in Sikkim

Monthly salary Tax per month
Up to INR 20,000 NIL
From INR 20,001 to INR 30,000
From INR 30,001 to INR 40,000
Above INR 40,000 INR 200

Professional Tax Slab in Assam

Monthly salary Tax per month
Up to INR 10,000 NIL
From INR 10,001 to INR 15,000 INR 150
From INR 15,001 to INR 25,000 INR 180
Above INR 25,000 INR 208

Professional Tax Slab in Meghalaya

Monthly salary Tax per month
Upto INR 50000 NIL
INR 50,001 to INR 75,000 INR 200
INR 75,001 to INR 1,00,000 INR 300
INR 1,00,001 to INR 1,50,000 INR 500
INR 1,50,001 to INR 2,00,000 INR 750
INR 2,00,001 to INR 2,50,000 INR 1000
INR 2,50,001 to INR 3,00,000 INR 1250
INR 3,00,001 to INR 3,50,000 INR 1500
INR 3,50,001 to INR 4,00,000 INR 1800
INR 4,00,001 to INR 4,50,000 INR 2100
INR 4,50,001 to INR 5,00,000 INR 2400
Above 5,00,001 INR 2500

Professional Tax Slab in Tripura

Monthly salary Tax per month
Upto INR 7500 NIL
INR 7,501 to INR 15,000 INR 1800
Above INR 15001 INR 2,496

Professional Tax Slab in Chattishgarh

Monthly salary Tax per month
Up to INR 1,50,000 NIL
From INR 1,50,001 to INR 2,00,000 INR 150
From INR 2,00,000 to INR 2,50,000 INR 180
From INR 2,50,001 to INR 3,00,000 INR 190
Above INR 3,00,000 INR 200

States and Union Territories where Professional Tax is not Applicable

State

  • Arunachal Pradesh
  • Haryana
  • Himachal Pradesh
  • Jammu & Kashmir
  • Punjab
  • Rajasthan
  • Nagaland
  • Uttaranchal
  • Uttar Pradesh

Union Territories

  • Andaman & Nicobar
  • Chandigarh
  • Delhi
  • Puducherry
  • Dadra & Nagar Haveli
  • Lakshadweep
  • Daman & Diu

FAQs

1. Does professional tax differ based on which state you are filing?

A: As the state governments levy the professional tax, it differs from state to state. Each state government declares its tax slab, and you will have to check which slab you fall under.

2. How is the professional tax levied?

A: Professional tax is levied under Article 276(2) of the Indian Constitution. The employer deducts it from the salaries of the employees. It is then remitted to the respective state governments. The maximum amount of professional tax payable by an individual is Rs. 2500.

3.Does it fall under direct taxation?

A: The professional tax falls under indirect taxation. It is payable by salaried individuals or persons carrying out a particular trade or profession such as a lawyer, doctor, chartered accountant, etc., are liable to pay.

4. Do non-salaried people have to pay professional tax?

A: It is levied on all individuals who are involved in professions. In other words, they may not be salaried individuals, but carrying out a trade that produces guaranteed income. Professionals like lawyers, doctors, chartered accountants, and people carrying out other similar businesses are liable to pay PT.

5. Are there rebates available for professional tax?

A: Since the PT is paid at the end of a month, it is expected that the tax is paid after completion of a full month’s employment. In such a scenario, you cannot file for IT returns or rebate on your professional tax.

6. How is the professional tax calculated?

A: For individuals whose gross income is up to Rs. 15,000, there is no professional tax. For individuals with income ranging between Rs. 15,001 to Rs. 20,000, a professional charge of Rs. 150 per month is levied. For those earning above Rs. 20000, PT of Rs. 200 per month can be collected.

7. How do I know if I have to pay professional tax?

A: If your annual income is more than Rs.15,000, then you are liable to pay professional tax. You will have to check which tax slab you fall under and in which state you are working. Accordingly, your employer will pay the tax.

8. Does the value of the professional tax payable vary annually?

A: The professional tax amount is decided by the state government and cannot exceed Rs.2500. It tax slabs can vary year to year, but it is fixed for a given financial year.

9. Whom should I consult before paying PT?

A: If you are a salaried individual, you can discuss it with the payment department of your office. If you are an individual, you can review the tax slab and the payment of professional tax with a chartered accountant. You can also go online and check out the various websites providing insights about the same.

10. Can I pay the tax in a bank?

A: Depending on the state you are making the payment. Ideally, you can do from both online and offline mode. If you make the payment offline, then check the Bank's list where you can make the payment. You can download the form from the IT department's website, fill it up, and accordingly file the tax.

11. What PT deductions I am eligible for?

A: You will be exempt from paying the tax if you are a parent of a mentally challenged child. You will also be exempt from paying the tax, if you have a permanent physical disability or blindness. Similarly, if you are above the age of 65, you will be exempt from paying the tax. If you work in Karnataka, then the exemption is for all assesses 60 years and above.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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