In this article, we outline the different professional tax rate slabs across the country. We also discuss the benefits of working with a professional tax relief firm.
What Does “Professional Tax” Mean?
Professional tax is a levy imposed on various trades, occupations, and professions, and it is based on an individual’s income. This tax applies to a broad spectrum of individuals, including employees, business owners, and professionals. Moreover, taxation is not limited to specific professional groups but is rather linked to the income levels of individuals. Learn more about Professional Tax Relief.
| The authority to enact laws related to professional tax lies with state governments, as per Article 246 of the Indian Constitution. Article 276 of the Constitution addresses aspects related to taxes on employment, professional tax relief, and trade. |
Benefits of Working With a Professional Tax Relief Firm
- Professional help
You will never have to deal with all your tax-related issues on your own again. Since you have tax professionals helping you with your tax-related work, you will never be alone again when it comes to your tax woes!
- Reduce your overall balance
Most of the time, the total amount you have to pay the government includes additional penalties, fines, and interest. Working with a professional tax relief firm will help you reduce the amount you owe the government. Such firms evaluate your condition and then work out ways to help you reduce your penalties and fines.
- Avoid losing your property due to seizure
In certain extreme cases, people end up losing their homes and others assets due to their inability to pay their taxes. When you work with a professional tax relief firm, you can ensure that this does not happen. Experts such as those at Vakilsearch work out ways for you to prevent and avoid such situations and unfortunate incidents.
Benefits of Vakilsearch’s Professional Tax Payment Services
Here’s a look at some of the benefits provided by Vakilsearch’s professional tax payment services:
Avoid having your account levied: Professional tax payment services can help you avoid having your accounts levied due to unpaid taxes.
Stop tax wage garnishment: Our services can assist in stopping tax wage garnishment, preventing a portion of your salary from being deducted for tax purposes.
Settle all your outstanding tax debt: Professional tax payment services can help you settle any outstanding tax debt, ensuring that your financial obligations are met.
Make sure you don’t get caught up on past returns: Our services can assist in ensuring that you stay current with your tax returns, avoiding issues related to past returns.
Assist with audits: If you face a tax audit, professional tax payment services can provide assistance and guidance throughout the audit process.
Avoid loss of credit score due to unpaid dues: Timely tax payments through our services can help you maintain a good credit score by avoiding unpaid tax dues.
Enjoy more peace of mind: By entrusting your tax payments to professional services, you can experience greater peace of mind knowing that your taxes are being managed effectively.
Protection of Assets and Income: Professional tax payment services can contribute to protecting your assets and income by ensuring compliance with tax regulations.
Professional Tax Slab
Since the Professional tax is levied by various State Governments, every state has its own laws. However, every state follows a slab format for collecting Professional tax. As per Article 276, State Governments can levy Professional tax up to ₹2,500.
Professional tax slab in Karnataka
| Monthly salary up to ₹15,000 | NIL |
| Monthly salary greater than ₹15,000 | ₹200/month |
Professional tax slab in Andhra Pradesh
| Monthly salary up to ₹15,000 | NIL |
| Monthly salary between ₹15,000 & ₹20,000 | ₹150/month |
| Monthly salary greater than ₹20,000 | ₹200/month |
Professional Tax in Maharashtra
| Up to ₹7,500 (Men) | NIL |
| Up to ₹10,000 (Women) | NIL |
| ₹7,500- ₹10,000 | ₹175/month |
| Above ₹10,000 |
Normal months – ₹200/month February- ₹300 |
Professional Tax in West Bengal
| Up to ₹ 8,500 | NIL |
| ₹ 8,500-₹ 10,000 | ₹ 90/month |
| ₹ 10,000-₹ 15,000 | ₹ 110/month |
| ₹ 15,000-₹ 25,000 | ₹ 130/month |
| ₹ 25,000-₹ 40,000 | ₹ 150/month |
| Above ₹ 40,000 | ₹ 200/month |
Professional Tax in Madhya Pradesh
| Up to ₹ 1.5 Lakhs | NIL |
| ₹ 1.5 lakhs- ₹ 1.8 lakhs | ₹ 125/month |
| Above ₹ 1.8 lakhs | ₹ 212/month |
Professional Tax in Tamil Nadu
| Up to ₹ 21,000 | NIL |
| ₹ 21,000-₹ 30,000 | ₹ 100/month |
| ₹ 30,000-₹ 45,000 | ₹ 235/month |
| ₹ 45,000-₹ 60,000 | ₹ 510/month |
| ₹ 60,000-₹ 75,000 | ₹ 760/month |
| Above ₹ 75,000 | ₹ 1095/month |
Professional Tax in Gujarat
| Up to ₹ 5,999 | NIL |
| ₹ 6,000- ₹ 8,999 | ₹ 80/month |
| ₹ 9,000- ₹ 11,999 | ₹ 150/month |
| Above ₹ 12,000 | ₹ 200/month |
Professional Tax in Odisha
| Up to ₹ 5,000 | NIL |
| ₹ 5,000-₹ 6,000 | ₹ 30/month |
| ₹ 6,000-₹ 8,000 | ₹ 50/month |
| ₹ 8,000- ₹ 10,000 | ₹ 75/month |
| ₹ 10,000- ₹ 15,000 | ₹ 100/month |
| ₹ 15,000- ₹ 20,000 | ₹ 150/month |
| Above ₹ 20,000 | ₹ 200/month |
Who Collects Professional Tax?
Professional tax is collected by the Commercial Tax Department, and each state has its own department that manages professional tax collection. The collected amount is then allocated to the municipality corporation fund.
Employers are responsible for deducting professional tax from employees’ salaries and remitting it to the State Government. Freelancers are also required to register and pay professional tax if their earnings surpass a certain limit.
| Corporate firms and companies engaged in trade or commerce must pay professional tax if their income exceeds a specific threshold. |
What Is The Procedure For Professional Tax Online Payment?
- Visit the official website of the state agency responsible for professional tax.
- Navigate to the Professional Tax tab on the homepage.
- Choose between being a self-employed individual or a registered employer.
- Enter the assigned Professional Tax Registration Number or search using the name of the company or office.
- Select the period for professional tax payment, specifying the month and year.
- Enter the exact tax amount payable and provide the necessary bank details.
- Choose the preferred payment method and enter your mobile number.
- Click on Enter and then Submit.
- Go to the payment portal and complete the transaction.
- Thereafter, save the challan for future reference.
Conclusion:
Dealing with tax authorities can be challenging, but it doesn’t have to be overwhelming. Seeking assistance from professionals, such as Vakilsearch, can help navigate the complexities and resolve tax-related issues effectively. Vakilsearch is India’s leading legal service provider, offering expertise in various legal matters, including tax-related concerns.
