Professional Tax rates around India

Last Updated at: October 30, 2020
1160
As a part of the recent economic booster dose announced by the honourable Finance Minister, the existing rates of TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) were reduced by 25% till 31st March, 2021. This reduced rate will also be applicable for payment for professional tax as well. 

 

The Constitution of India stipulates a ceiling of Rs. 2500 per person per annum, but state government is free to decide any slabs. This is why the rates and criteria are different around major Indian states. Here are the slabs prevailing in Karnataka, Maharashtra, Tamil Nadu, and Gujarat.

Professional Tax in Karnataka
In Karnataka, professional tax is levied under Karnataka Tax on Professions, Tax, Callings and Employment Act, 1976. It stipulates different slabs for the salaried, business owners and others. You can find out the entire list here.

Get Professional Tax Registration

The salaried in Karnataka do not have to pay professional tax if their salary is less than Rs. 15,000 per month. Once it crosses, Rs. 15,000, they must pay Rs. 200 a month.

A penalty of 1.25% per month, going up to 50% of the amount owed, can be charged on non-payment. It is the responsibility of the employer to deduct the tax and pay it to the state government.

Professional Tax in Gujarat
In Gujarat, professional tax is levied under Gujarat Panchayats, Municipalities, Municipal Corporations And State Tax on Professions, Tax, Callings and Employment Act, 1976. As in other states, there are different rates for different classes of employees, which you can find by clicking the above link. For salaried employees, the rates are as follows:

Less than Rs. 5999: Nil
Rs. 6000 to Rs. 8999: Rs. 80/month
Rs. 9000 to Rs. 11,999: Rs. 150/month
Rs. 12,000 and above: Rs. 200/month

Professional Tax in Tamil Nadu
In Tamil Nadu, professional tax is levied under Town Panchayats, Municipalities & Municipal Corporation Rules, 1988. Tax is to be paid based on the amount of income received every six months, as follows:

Up to Rs. 21,000: Nil
Rs. 21,001 to Rs. 30,000: Rs. 100 for six months
Rs. 30,001 to Rs. 45,000: Rs. 235 for six months
Rs. 45,001 to Rs. 60,000: Rs. 510 for six months
Rs. 60,001 to Rs. 75,000: Rs. 760 for six months
Rs. 75,001 onwards: Rs. 1095 for six months

Professional Tax in Maharashtra
In Maharashtra, professional tax is levied under Maharashtra State Tax on Professions, Trades, Callings and Employment, 1975. A unique provision exists in this state, where you can pay a professional tax advance of Rs. 10,000 and not pay professional tax for five years (it’s a discount of one year). If not, however, you must pay professional tax at the following rate:

Up to Rs. 7500: Nil
Rs. 7501 to Rs. 10,000: Rs. 175 per month
Rs. 10,001 onwards: Rs. 200 from March to January, Rs. 300 in February

A penalty of 1.25% per month, going up to 10% of the amount owed, can be charged on non-payment. It is the responsibility of the employer to deduct the tax and pay it to the state government.

Frequently Asked Questions

Can you view your old tax returns online?

Tax returns for the past six years till now can be retrieved by visiting www.irs.gov website, filing form 4506, a request for copies of tax returns and post to your area IRS address. Learn More about Income tax classes

0

Professional Tax rates around India

1160
As a part of the recent economic booster dose announced by the honourable Finance Minister, the existing rates of TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) were reduced by 25% till 31st March, 2021. This reduced rate will also be applicable for payment for professional tax as well. 

 

The Constitution of India stipulates a ceiling of Rs. 2500 per person per annum, but state government is free to decide any slabs. This is why the rates and criteria are different around major Indian states. Here are the slabs prevailing in Karnataka, Maharashtra, Tamil Nadu, and Gujarat.

Professional Tax in Karnataka
In Karnataka, professional tax is levied under Karnataka Tax on Professions, Tax, Callings and Employment Act, 1976. It stipulates different slabs for the salaried, business owners and others. You can find out the entire list here.

Get Professional Tax Registration

The salaried in Karnataka do not have to pay professional tax if their salary is less than Rs. 15,000 per month. Once it crosses, Rs. 15,000, they must pay Rs. 200 a month.

A penalty of 1.25% per month, going up to 50% of the amount owed, can be charged on non-payment. It is the responsibility of the employer to deduct the tax and pay it to the state government.

Professional Tax in Gujarat
In Gujarat, professional tax is levied under Gujarat Panchayats, Municipalities, Municipal Corporations And State Tax on Professions, Tax, Callings and Employment Act, 1976. As in other states, there are different rates for different classes of employees, which you can find by clicking the above link. For salaried employees, the rates are as follows:

Less than Rs. 5999: Nil
Rs. 6000 to Rs. 8999: Rs. 80/month
Rs. 9000 to Rs. 11,999: Rs. 150/month
Rs. 12,000 and above: Rs. 200/month

Professional Tax in Tamil Nadu
In Tamil Nadu, professional tax is levied under Town Panchayats, Municipalities & Municipal Corporation Rules, 1988. Tax is to be paid based on the amount of income received every six months, as follows:

Up to Rs. 21,000: Nil
Rs. 21,001 to Rs. 30,000: Rs. 100 for six months
Rs. 30,001 to Rs. 45,000: Rs. 235 for six months
Rs. 45,001 to Rs. 60,000: Rs. 510 for six months
Rs. 60,001 to Rs. 75,000: Rs. 760 for six months
Rs. 75,001 onwards: Rs. 1095 for six months

Professional Tax in Maharashtra
In Maharashtra, professional tax is levied under Maharashtra State Tax on Professions, Trades, Callings and Employment, 1975. A unique provision exists in this state, where you can pay a professional tax advance of Rs. 10,000 and not pay professional tax for five years (it’s a discount of one year). If not, however, you must pay professional tax at the following rate:

Up to Rs. 7500: Nil
Rs. 7501 to Rs. 10,000: Rs. 175 per month
Rs. 10,001 onwards: Rs. 200 from March to January, Rs. 300 in February

A penalty of 1.25% per month, going up to 10% of the amount owed, can be charged on non-payment. It is the responsibility of the employer to deduct the tax and pay it to the state government.

Frequently Asked Questions

Can you view your old tax returns online?

Tax returns for the past six years till now can be retrieved by visiting www.irs.gov website, filing form 4506, a request for copies of tax returns and post to your area IRS address. Learn More about Income tax classes

0

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