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All about Professional Tax

Neethi V. Kannanth , Last updated: 24 May 2022  
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Professional tax is a tax levied on persons earning income either by way of practicing profession, employment, trade etc. It is levied by the State Government or the Union Territory and not by the Central Government.

Applicability of Professional Tax

Professional tax is applicable to the following-

  • Individual
  • Hindu Undivided Family
  • Company
  • Firm
  • Co-operative Society
  • Association of Person
  • Body of Individuals
All about Professional Tax

Amount of Professional Tax

Since the tax is levied by the State Government, the amount of professional tax to be deducted varies from State to State. But the maximum professional tax leviable is restricted to Rs. 2,500/- on any person in a financial year.

The amount at which professional tax is payable in various states is given below-

State

Income per Month

Tax Rate/Tax Amount (p.m.)

Andhra Pradesh

Less than Rs. 15,000

Nil

Rs. 15,000 to less than Rs. 20,000

Rs. 150

Rs. 20,000 and above

Rs. 200

Gujarat

Up to Rs. 5999

Nil

Rs. 6000 to Rs. 8999

Rs. 80

Rs. 9000 to Rs. 11999

Rs. 150

Rs 12000 and above

Rs. 200

Karnataka

Up to Rs. 15,000

Nil

Rs. 15,001 onwards

Rs. 200

Kerala (Half yearly income slabs and half yearly tax payment)

Up to Rs.11,999

Nil

Rs.12,000 to Rs.17,999

Rs.120

Rs.18,000 to Rs. 29,999

Rs.180

Rs.30,000 to Rs. 44,999

Rs.300

Rs.45,000 to Rs. 59,999

Rs.450

Rs.60,000 to Rs. 74,999

Rs.600

Rs.75,000 to Rs. 99,999

Rs.750

Rs.1,00,000 to Rs. 1,24,999

Rs.1000

Rs.1,25,000 onwards

Rs.1250

Maharashtra

Up to Rs. 7,500

Nil (for male)

Up to Rs. 10,000

Nil (for female)

From Rs. 7,500 to Rs. 10,000

Rs. 175 (for male)

Rs. 10,000 onwards

Rs. 200 for 11 months + Rs. 300 for 12th month

Telangana

Up to Rs. 15,000

Nil

Rs.15,001 to Rs.20,000

Rs. 150

Rs.20,001 onwards

Rs.200

Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.)

Nil

Over 5 years (For professionals such as legal practitioners, CA, architects, etc.)

Rs. 2,500 (per annum)

West Bengal

Up to 10,000

Nil

10,001 to 15,000

Rs. 110

15,001 to 25,000

Rs. 130

25,001 to 40,000

Rs. 150

40,001 and above

Rs. 200

 

Payment of Professional Tax

  • Self Employed Persons - The persons who carry out their profession or trade are required to pay professional tax themselves to the State Government.It can either be paid monthly or annually at their choice. Further, self-employed taxpayers are required to obtain a Certificate of Enrolment from the prescribed authority in the manner prescribed for the purpose of remittance of professional tax.
  • Salaried Employees or Wage Earners - The employer is liable to deduct professional tax on monthly basis from the salary or wages in accordance with the slab applicable and deposit the same to the State Government. In this case, the employer is required to obtain a Certificate of Registration from the prescribed authority in order to remit the professional tax deducted.
 

Deduction under Income Tax

The professional tax paid by an employee is allowed as a deduction from his/her gross salary income under Section 16 (iii) of the Income Tax Act 1961.


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