I have registered as proprietor in GST website in nov 2018. I got GST number also. Please tell me whether i need pay profession tax. If i need to pay .how much i hav to pay..
Professional tax is a tax levied and collected by the State Government on every single earning individual who earns a living through any medium which can be a profession, trade, calling or employment. However, it should not be mixed with the professionals that means doctors, chartered accountants, lawyers, etc. Clause (2) of Article 276 of the Constitution of India provides the right to the State Government for levy and collection of professional tax or tax on the profession.
As the rights remain with the State Government, certain states do not charge professional tax too. The tax is levied based on the slab rates depending upon the income of the individual. However, the maximum amount any State can levy as Professional Tax is restricted to ₹ 2,500. The amount paid as Professional Tax is allowed as a deduction under section 16 of the Income Tax Act, 1961 and the income tax on the balance amount shall be calculated as per the slabs applicable.