Professional Tax: A Brief Snapshot
December 4, 2024
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Introduction
Professional Tax is the tax levied by the State Government Any individual who is working and earning income from salary, business or any kind of profession is liable to pay this Tax Different states in the country have different rules in the collection of the amount as per the (State) Professional Tax Act There are few states who do not have any Professional Tax.
Applicability Of Professional Tax
Profession tax is levied under the professional tax act. The state collects this tax under the following mentioned category, you need to pay professional tax:
- An individual who earns income through salary or business or any other profession falls under the PT tax slab
- A Hindu Undivided Family (HUF) is liable to pay tax under the professional tax section
- A company or a firm or a cooperative society of an individual or a group of individuals is under professional tax slab
Tax Rates
Rates of the Professional Tax section vary in all states. The state cannot tax an individual or a company more than 2500 rupees per annum.
Professional Tax is applicable on the following states:
Andhra Pradesh
|
Upto 15000 (₹) |
Between 15001-20000 (₹) | Above 20001 (₹) |
| NIL | 150 |
200 |
Assam
|
Upto 10000 (₹) |
Between 10001-15000 (₹) | Between 15001-25000 (₹) | Above 25001 (₹) |
| Nil | 150 | 180 |
208 |
Bihar
|
Upto 300000 (₹) |
Between 300001-500000 (₹) | Between 500001-1000000 (₹) | Above 1000001 (₹) |
| Nil | 1000 | 2000 |
2500 |
Coimbatore
|
Upto 21000 (₹) |
Between 21001 -30000 (₹) | Between 30001 -45000 (₹) | Between 45001 -60000 (₹) | Between 60001 -75000 (₹) | Above 75000 (₹) |
| Nil | 171 | 428 | 856 | 1250 |
1250 |
Gujarat
|
Upto 12000 (₹) |
Above 12000 (₹) |
| Nil |
200 |
Jharkhand
|
Upto 300000 (₹) |
Between 300001-500000 (₹) | Between 500001-800000 (₹) | Between 800000-1000000 (₹) | Above 1000001 (₹) |
| Nil | 1200 | 1800 | 2100 |
2500 |
Karnataka
|
Above 24999 |
₹200 |
Kerala
|
Upto 11999 (₹) |
Between 12000-17999 (₹) | Between 18000-29999 (₹) | Between 30000-44999 (₹) | Between 45000-99999 (₹) | Between 100000-124999 (₹) | Above 125000 (₹) |
| Nil | 320 | 450 | 600 | 750 | 1000 |
1250 |
Madhya Pradesh
|
Upto 225000 (₹) |
Between 225001-300000 (₹) | Between 300001-400000 (₹) | Above 400001 (₹) |
| 0 | 1500 | 2000 | 2500 |
| Nil | 125 Per Month | 166 Per Month For 11 Months & 174 For 12th Month |
208 Per Month For 11 Months & 212 For 12th Month |
Maharashtra
| Upto 7500 (₹) | Between 7501-10000 (₹) | Above 10001 (₹) | Above 10001 (₹) (Only February) | Upto 25000 (₹) | Above 25001 (₹) | Above 25001 (₹)
(Only February) |
| 0 | 175 | 200 | 300 | 0 | 200 | 300 |
| For Male Employees | For Female Employees | |||||
Manipur
|
Upto 50000 (₹) |
Between 50000-75000 (₹) | Between 75001-100000 (₹) | Between 100001-125000 (₹) | Above 125001 (₹) |
| Nil | 1200 | 2000 | 2400 |
2500 |
Meghalaya
| Upto 50000 (₹) | Between 50001-75000 (₹) | Between 75001-100000 (₹) | Between 100001-150000 (₹) | Between 150001-200000 (₹) | Between 200001-250000 (₹) | Between 250001-300000 (₹) | Between 300001-350000 (₹) | Between 350001-400000 (₹) | Between 400001-450000 (₹) | Between 450001-500000 (₹) | Above 500001 (₹) |
| Nil | 200 | 300 | 500 | 750 | 1000 | 1250 | 1500 | 1800 | 2100 | 2400 | 2500 |
Mizoram
|
Upto 5000 (₹) |
Between 5001-8000 (₹) | Between 8001-10000 (₹) | Between 10001-12000 (₹) | Between 12001-15000 (₹) | Above 15001 (₹) |
| 0 | 75 | 120 | 150 | 180 | 208 |
| Nil | Lumpsum: 900 Per Annum | Lumpsum: 1440 Per Annum | Lumpsum: 1800 Per Annum | Lumpsum: 2160 Per Annum |
Lumpsum: 2500 Per Annum |
Nagaland
|
Upto 4000 (₹) |
Between 4001-5000 (₹) | Between 5001-7000 (₹) | Between 7001-9000 (₹) | Between 9001-12000 (₹) | Above 12001 (₹) |
| Nil | 35 | 75 | 110 | 180 | 208 |
Odisha
|
Upto 160000 (₹) |
Between 160001-300000 (₹) | Above 300001 (₹) |
| Nil | 1500 |
2500 |
Puducherry
|
Upto 99999 (₹) |
Between 100000-200000 (₹) | Between 200001-300000 (₹) | Between 300001-400000 (₹) | Between 400001-500000 (₹) | Above 500001 (₹) |
| 0 | 250 | 500 | 750 | 1000 | 1250 |
Punjab
| Above 250000 | ₹200 | All Such Persons Who Are Assessable Under The Head Income From Salaries And/ Or Wages As Per The Income Tax Act, 1961 |
Sikkim
|
Upto 20000 (₹) |
Between 20001-30000 (₹) | Between 30001-40000 (₹) | Above 40001 (₹) |
| Nil | 125 | 150 |
200 |
Tamil Nadu
|
Upto 21000 (₹) |
Between 21001-30000 (₹) | Between 30001-45000 (₹) | Between 45001-60000 (₹) | Between 60001-75000 (₹) | Above 75001 (₹) |
| Nil | 135 | 315 | 690 | 1025 |
1250 |
Telangana
|
Upto 15000 (₹) |
Between 15001-20000 (₹) | Above 20001 (₹) |
| Nil | 150 |
200 |
Tripura
|
Upto 7500 (₹) |
Between 7501-15000 (₹) | Above 15000 (₹) |
| 0 | 1800 | 2496 |
| Nil | 150 Per Month | 208 Per Month |
West Bengal
|
Upto 8500 (₹) |
Between 8501-10000 (₹) | Between 10001-15000 (₹) | Between 15001-25000 (₹) | Between 25001-40000 (₹) | Above 40001 (₹) |
|
Nil |
Nil | 110 | 130 | 150 |
200 |
The following states do not have any PT:
- Central
- Andaman and Nicobar Islands
- Arunachal Pradesh
- Chandigarh
- Chhattisgarh
- Dadra and Nagar Haveli
- Daman and Diu
- Delhi
- Goa
- Haryana
- Himachal Pradesh
- Jammu and Kashmir
- Ladakh
- Lakshadweep
- Rajasthan
- Uttar Pradesh
- Uttarakhand
Payment Procedure
Professional tax can be paid through both online and offline methods. Employers typically handle deductions for salaried employees directly from their wages. For self-employed individuals, registration with the local tax authority is required before payment.
- Online Payment: Visit the official website of the respective state’s tax department.
- Offline Payment: Payments can also be made at designated banks or government offices.
Compliance Support
SGMS is committed to assisting you in understanding professional tax requirements comprehensively and ensuring compliance with all relevant regulations. If you have further questions or need assistance with your professional tax obligations, feel free to reach out for guidance.
