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Get the latest information about state-wise professional tax in India.
Professional Tax is levied by the state government of India on individuals who earn a living through a profession, trade, or employment. It is governed by the Professional Tax Act, which varies from state to state.
Professional Tax is a source of revenue for the state governments and is used for various public welfare activities such as building schools, roads, hospitals, and other infrastructure facilities.
In India, the Professional Tax is applicable to all individuals who are engaged in any kind of profession, trade, or employment, and the tax liability varies from state to state. The tax is usually deducted by the employer from the salary or wages of the employee and deposited with the state government.
The amount of tax levied on an individual is calculated on the basis of their income, profession, and other factors such as age, gender, and the number of dependents. The tax rates and slabs also vary from state to state, with some states exempting certain categories of individuals from the tax.
It is important to note that failure to pay Professional Tax can result in penalties and legal action by the state government. Therefore, it is important for individuals who are liable to pay Professional Tax to ensure that they comply with the relevant laws and regulations.
The registrations and returns of Professional Tax in India depend on the state where the individual is employed. However, some common registrations and returns for Professional Tax in India are as follows:
1. Enrollment: Individuals liable to pay Professional Tax are required to enroll themselves with the Professional Tax department of their respective state.
2. Employer registration: Employers who have employees working in their organization are required to register with the Professional Tax department and obtain a Certificate of Registration.
1. Monthly returns: Employers are required to file monthly returns of the Professional Tax deducted from the salary or wages of their employees.
2. Annual returns: Employers are also required to file an annual return providing details of the total Professional Tax deducted and deposited during the financial year.
3. Nil returns: If no Professional Tax has been deducted during a particular month or financial year, a nil return must be filed.
The due dates for filing returns and payment of Professional Tax vary from state to state. It is important for employers and individuals to be aware of the relevant due dates and comply with them to avoid penalties and legal action by the state government.
It is advisable to seek professional assistance from a tax consultant or chartered accountant to ensure compliance with the relevant laws and regulations regarding Professional Tax in India.
The exemptions from paying Professional Tax in India depend on the state where the individual is employed, and the rules and regulations of that state’s Professional Tax Act. However, some common exemptions are as follows:
1. Senior citizens: In some states, senior citizens above a certain age (usually 60 years) are exempted from paying Professional Tax.
2. Persons with disabilities: In some states, individuals with disabilities are exempted from paying Professional Tax.
3. Self-employed individuals: In some states, self-employed individuals such as freelancers, sole proprietors, and partners in partnership firms may be exempted from paying Professional Tax.
4. Individuals below a certain income threshold: Some states exempt individuals with a low income (below a certain threshold) from paying Professional Tax.
5. Government employees: In some states, government employees such as those working in public sector undertakings or local bodies are exempted from paying Professional Tax.
It is important to note that the exemptions from Professional Tax may vary from state to state, and it is advisable to check the rules and regulations of the relevant state’s Professional Tax Act to determine the eligibility for exemption.
As per article 276 of the Indian constitution, any resident of India who is earning income through salary or is practicing a profession such as doctor, chartered accountant, lawyer, etc., pays professional tax to the specific state government. Given below is a list of states in India where professional tax is levied.
| Karnataka | Madhya Pradesh | Andhra Pradesh | Tamil Nadu |
| West Bengal | Telangana | Gujarat | Assam |
| Chhattisgarh | Kerala | Meghalaya | Orissa |
| Tripura | Maharashtra | ||