Log in

What is professional tax?

In India, the professional tax is imposed at the state level. However, not all the states impose this tax, the following states impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.
Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is Rs.2,400/- and in line with your salary, there are predetermined slabs. It is paid by every member of staff employed in private companies. It is subtracted by the employer each month and sent to the Municipal Corporation. It is compulsory just like income tax. You will be eligible for income tax deduction for this payment.
Criteria in various states of India
In Maharashtra, this duty is applicable both on individuals and companies as laid down by the guidelines of the Maharashtra Professional Tax Act of 1975.
Every individual living in Maharashtra, involved in any business, profession, occupation or employment is legally responsible to pay it and has to get a Certificate of Enrolment from the Professional Authority.
As soon as you receive this certificate, you can fulfill your personal tax liability for 5 years by making a one-time payment, which is equivalent to the sum of Professional Tax for 4 years beforehand, getting relief for payment of one year.
In Tamil Nadu, it is imposed by the Municipal Council on businessmen, professionals, and employed individuals.
Every company which conducts business and every individual, who is involved directly in any business, occupation, or employment in the town panchayat on the first day of the half-year for which return has been submitted, needs to pay biannual tax at the rates stipulated.
Professional Tax Slabs in Various States

In West Bengal
Income Tax to be imposed
Upto 1,500 Nil
From ` 1501 To Rs 2001 Rs. 18
From ` 2001 To Rs 3001 Rs. 25
From ` 3001 To Rs 5001 Rs. 30
Rs. 5001 Rs. 40
From ` 6001 -7001 Rs. 45
From Rs.7001 to Rs.8000 Rs.50
From Rs.8001 to Rs.9000 Rs.90
From Rs.9001 to Rs.15,000 Rs.110
From Rs.15001 to Rs.25,000 Rs.130
From Rs.25,001 to Rs.40,000 Rs.150
Beyond Rs.40,001 Rs.200


In Maharashtra

Income Tax to be imposed
upto ` 2500 Nil
From ` 2500 to Rs 3500 Rs.60
From ` 3500 to Rs 5000 Rs.120
From ` 5000 to Rs 10000 Rs.175
More than Rs.10000 Rs 200


In Tamil Nadu

Income Tax to be imposed
Upto Rs.21000 Nil
From Rs.21001 to Rs.30000 Rs.75
From Rs.30001 to Rs.45000 Rs.188
From Rs.45001 to Rs.60000 Rs.390
From Rs.60001 to Rs.75000 Rs.585
More than Rs.75001 Rs.810


In New Delhi

Income Tax to be imposed
Upto Rs.1,10,000 Nil
From Rs.1,10,000 To ` 1,45,000 Nil
From Rs.1,45,000 To ` 1,50,000 10 %
From Rs.1,50,000 To ` 1,95,000 20 %
From Rs.1,95,000 To ` 2,50,000 20 %
More than Rs.2,50,000 30 %