professional tax
This query is : Resolved
17 May 2010
Plzz tell me what is profeesional tax.Why is this tax charged.I know its maximum limit is Rs.2500 but it is per month or per year.To whom it is charged and how it is calculated for an assesse to pay it?
17 May 2010
Professional tax or employment tax is a state-based tax. It is allowed as a deduction from the gross income before computing the tax.
Article 276 of the Constitution empowers the state to levy the tax in respect of profession, trade, calling and employment, but it also fixes the ceiling that can be amended only through the Constitutional amendment by Parliament.
The state government of each state is empowered with the responsibility of structuring as well as formulating the respective professional tax criteria and they are also required to collect funds through professional tax.
The professional taxes are charged on the incomes of individuals, profits of business or gains in vocations. The professional tax is charged as per the List II of the Indian Constitution. The professional taxes are classified under various tax slabs in India.
Article 276 of the Constitution empowers the state to levy the tax in respect of profession, trade, calling and employment, but it also fixes the ceiling that can be amended only through the Constitutional amendment by Parliament.
The state government of each state is empowered with the responsibility of structuring as well as formulating the respective professional tax criteria and they are also required to collect funds through professional tax.
The professional taxes are charged on the incomes of individuals, profits of business or gains in vocations. The professional tax is charged as per the List II of the Indian Constitution. The professional taxes are classified under various tax slabs in India.
17 May 2010
Maximum Limit of Rs.2500/- is per year. P.Tax slab are different in different states.
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