Professional tax - kerala

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.

For the Financial Year 2015-16 few states have made some alteration which has been updated in this post.

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