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about professional tax

25 June 2017

I recently started an company and employed 10 employees in our company , but i am confused about how to pay professional tax on them, and what amount should i deduct from their salary on monthly basis.please tell me the whole structure of professional tax

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Karan Batra (Creator: TheProTalks) (2325 Points)
Replied 26 June 2017

Professional tax is a tax levied by the various State Governments of India on salaried individuals, working in government or non-government entities, or in practice of any profession, including Chartered Accountants, Doctors, Lawyers etc or carry out some form of business. This form of tax is in practice for a long time and States were conferred the power of leveling the Tax under Clause (2) of Article 276. The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. However the maximum Professional Tax that can be levied by any State till date is Rs 2500/-. The total amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act. The professional tax is a source of revenue for the State Governments which helps the different in implementing schemes for the welfare and development of the region.

Professional Tax is deducted by the employers from the salary of the salaried employees and same is deposited with the State Government. For other individuals, they have to directly pay it to the Government or through the Local Bodies appointed to do so.

Professional Tax Rates for the Financial Year 2017-18. Click on the Link below:

Professional Tax For The Financial Year 2017-18

For the Financial Year 2016-17, few states have made some alteration which has been updated in this post. Any further changes or revision, I come to know will be updated at the earliest.

Let’s look at the Professional Tax Slabs of the States which levy the Professional Tax:-

Andhra Pradesh

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 15,000/-	Nil
Rs 15,001-Rs 20,000/-	Rs 150
Rs 20,001/- or Above	Rs 200

Assam

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 10,000/-	Nil
Rs 10,001- Rs 14,999/-	Rs 150
Rs 15,000- Rs 24,999/-	Rs 180
Rs 25,000/- or Above	*Rs 208 & 212

*Professional Tax is payable @ Rs 208 for first 11 months and Rs 212 in the last month.

Bihar

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 25,000/-	Nil
Rs 25,001-Rs 41,666/-	Rs 83.33
Rs 41,667-Rs 83,333/-	Rs 166.67
Rs 83,334/- or Above	Rs 208.33

Chattisgarh (Exempted as per the Notification dated 31/03/2011)

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 12,500/-	Nil
Rs 12,501-Rs 16,667/-	Rs 150
Rs 16,668-Rs 20,833/-	Rs 180
Rs 20,834-Rs 25,000/-	Rs 190
Rs 25,001/- or Above	Rs 200

Goa

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 15,000/-	Nil
Rs 15,001-Rs 25,000/-	Rs 150
Rs 25,001/- or Above	Rs 200

Gujarat

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 5,999/-	Nil
Rs 6,000-Rs 8,999/-	Rs 80
Rs 9,000-Rs 11,999/-	Rs 150
Rs 12,000/- or Above	Rs 200

Jharkhand

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 25,000/-	Nil
Rs 25,001-Rs 41,666/-	Rs 100
Rs 41,667-Rs 66,666/-	Rs 150
Rs 66,666-Rs 83,333/-	Rs 175
Rs 83,334/- or Above	*Rs 208

*Professional Tax is payable @ Rs 208 for first 11 months and Rs 212 in the last month.

Karnataka

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 14,999/-	Nil
Rs 15,000/- or Above	Rs 200

Kerala

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 1,999/-	Nil
Rs 2,000- Rs 2,999/-	Rs 20(120)
Rs 3,000- Rs 4,999/-	Rs 30(180)
Rs 5,000- Rs 7,499/-	Rs 50(300)
Rs 7,500- Rs 9,999/-	Rs 75(450)
Rs 10,000- Rs 12,499/-	Rs 100(600)
Rs 12,500- Rs 16,666/-	Rs 125(750)
Rs 16,667- Rs 20,833/-	Rs 166(1000)
Rs 20,834/- or Above	Rs 208(1250)

Payable Semi Annually. In bracket Professional Tax payable Semi Annually is mentioned.

Madhya Pradesh

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 15,000/-	Nil
Above Rs 15,001/-	*Rs 208 & Rs 212

*Madhya Pradesh levies Professional Tax @ Rs 208 for 11 months and Rs 212 for the last month.

Maharashtra

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 7,500/-	Nil
Rs 7,501-Rs 10,000/-	Rs 175
Above Rs 10,001/-	*Rs 200 & Rs 300

*Maharashtra Government levies Professional Tax @ Rs 200 for 11 months and Rs 300 for the last month.

**Women who earn Salary up to Rs 10,000/- per month are exempted from paying Professional Tax.

Meghalaya

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 4,166/-	Nil
Rs 4,167- Rs 6,250/-	Rs 16.50
Rs 6,251- Rs 8,333/-	Rs 25
Rs 8,334- Rs 12,500/-	Rs 41.50
Rs 12,501- Rs 16,666/-	Rs 62.50
Rs 16,667- Rs 20,833/-	Rs 83.33
Rs 20,834- Rs 25,000/-	Rs 104.16
Rs 25,001/- Rs 29,166/-	Rs 125
Rs 29,167/-Rs 33,333/-	Rs 150
Rs 33,334/- Rs 37500/-	Rs 175
Rs 37,501/- Rs 41,666/-	Rs 200
Above Rs 41,667/-	*Rs 208

*Professional Tax is payable @ Rs 208 for first 11 months and Rs 212 in the last month.

Orissa

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 13,304/-	Nil
Rs 13,305- Rs 25,000/-	Rs 125
Rs 25,001/- or Above	*Rs 200 & Rs 300

*Professional Tax will be payable @ Rs 200 for first 11 months and Rs 300 in the last month.

Tamil Nadu

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 3,500/-	Nil
Rs 3,501-Rs 5,000/-	Rs 16.66(100)
Rs 5,001-Rs 7,500/-	Rs 40 (235)
Rs 7,501-Rs 10,000/-	Rs 85(510)
Rs 10,001-Rs 12,500/-	Rs 126.67(760)
Above Rs 12,501/-	Rs182.50 (1095)

Collectible Semi- Annually. In bracket Professional Tax payable Semi Annually is mentioned.

Telangana

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 15,000/-	Nil
Rs 15,001-Rs 20,000/-	Rs 150
Rs 20,001/- or Above	Rs 200

Tripura

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 5,000/-	Nil
Rs 5,001- Rs 7,000/-	Rs 70 (420)
Rs 7,001- Rs 9,000/-	Rs 120(720)
Rs 9,001- Rs 12,000/-	Rs 140(840)
Rs 12,001- Rs 15,000/-	Rs 190(1140)
Rs 15,001/- or Above	Rs 2496(208)

Collectible Semi-Annually. Amount given in bracket is the Professional Tax payable Semi Annually.

West Bengal

Monthly Salary	Professional Tax Levied (P.M)
Up to Rs 8,500/-	Nil
Rs 8,501-Rs 10,000/-	Nil (from 01/08/2016)
Rs 10,001-Rs 15,000/-	Rs 110
Rs 15,001-Rs 25,000/-	Rs 130
Rs 25,001-Rs 40,000/-	Rs 150
Above Rs 40,001/-	Rs 200

States and Union Territories where Professional Tax is Not Applicable

Arunachal Pradesh

Andaman & Nicobar

Chandigarh

Dadra & Nagar Havelli

Daman & Diu

Delhi

Haryana

Himachal Pradesh

Jammu & Kashmir

Lakshadweep

Nagaland

Punjab

Rajasthan

Uttaranchal

Uttar Pradesh

Exemption from Paying Professional Tax (Subject to exemption approved by the respective State)

Any person suffering from a permanent physical disability (including blindness)
Parents or guardian of any person who is suffering from mental retardation.
Persons who have completed the age of 65 years.(60 years in case of Karnataka)
Parents or guardians of a child suffering from a physical disability as specified in clause (C) w.e.f 1.10.1996.

Ahmedbasha Sk (4 Points)
Replied 26 June 2017

thank you for your reply sir, i have another query sir, so first the total annual amount of professional tax for each employee should be paid to the government and the proportionate monthly professional tax should be deducted by employer from his employees salary right ??