West Bengal Overhauls Professional Tax: New Schedule Notified

The West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 was recently amended vide Notification No. 756-L dated 07.08.2026. In exercise of powers under sub-section (3) of Section 3, the Governor has now proposed to substitute the entire existing Schedule with a new Schedule under the newly introduced sub-section (2A) of Section 3.

This is the first comprehensive revision of West Bengal’s professional tax slabs in over a decade — and it changes the landscape for salaried employees, self-employed professionals, traders, and a significantly expanded list of fixed-rate categories.

1. Salaried Employees (Part A, Sl. No. 1) — Effective 1 October 2026

The headline change for employers and payroll teams: the exemption threshold doubles from ₹10,000 to ₹20,000 per month, and the slab structure is completely reset.

• Employees earning up to ₹20,000 per month move entirely out of the professional tax net — substantial relief for lower and middle salary bands.
• Most intermediate slabs see a reduction (for example, ₹200 → ₹170 for the ₹50,000–₹1,00,000 band).
• A new top slab of ₹208 per month applies above ₹1,00,000, taking the annual liability to ₹2,496 — effectively at the constitutional ceiling of ₹2,500 under Article 276(2).

2. Self-Employed Professionals (Part A, Sl. No. 2) — Effective FY 2027-28

Individuals engaged in any profession or calling (other than those covered in Part B or Part C) will pay on the basis of annual gross income of the preceding year:

3. Traders and Suppliers of Goods / Services (Part A, Sl. No. 3) — Effective FY 2027-28

Persons engaged in a profession, calling or trade involving supply of goods or services or both will pay on the basis of annual gross turnover / gross receipt of the preceding year:

Note the raised entry point: turnover up to ₹10 lakh attracts no tax, aligning broadly with GST registration thresholds and easing compliance for micro traders.

4. Exemptions (Part B) — Effective 1 October 2026

Two classes remain at NIL:

1. Persons already exempted under Section 26 notifications (Notification Nos. 941-F.T. dated 07.03.1981 and 368-F.T. dated 28.03.2013).
2. Personnel on active duty with the Border Security Force, as defined under Section 2(1)(a) of the BSF Act, 1968.

5. Flat ₹2,500 Categories (Part C) — Effective 1 October 2026

Part C lists 25 classes of persons liable to pay a flat ₹2,500 per annum irrespective of income or turnover. Alongside familiar entries (companies, banking companies, directors, factory occupiers, estate agents, transport permit holders, liquor licensees, chit funds, money lenders, turf club bookmakers), the proposed Schedule notably widens the net to the modern services economy:

• Digital and technology professionals working independently — cloud architects, SREs, cloud security engineers, data science and advanced analytics professionals, blockchain developers, cybersecurity analysts, software architects, UI/UX designers and product managers, along with similar digital, online, consultancy, creative, technical or platform-based professions.
• Online educators and EdTech founders, tele-medicine platform operators, and digital marketing agency owners.
• Production houses and producers creating content for streaming cinema, advertisements, OTT platforms and television serials.
• Consultants of all stripes — management, financial, strategy, IT & digital, marketing & sales, and HR consultants.
• Air-conditioned establishments — restaurants, cafeterias and food businesses; hotels, resorts, boarding houses, serviced apartments, short-term/vacation rentals and home stays; beauty parlours, spas and salons; gyms, slimming and wellness centres.
• Healthcare establishments — hospitals, nursing homes, pathological laboratories, diagnostic centres (including imaging and radiology), day-care centres and IVF centres.
• Security service providers — both physical (manned guarding, investigation, verification) and digital (cyber-security auditing, remote electronic surveillance).
• Shops and commercial units inside shopping malls or multiplexes.

Explanatory notes to keep in mind:

• Where a person falls under more than one entry, the higher / highest rate prevails.
• “Annual gross income” and “annual gross turnover / receipt” refer to the immediately preceding year, and for firms, companies and societies aggregate across all branches or offices in West Bengal.
• Each branch or office of a firm, company or society pays at the same rate as the entity itself — branch-wise liability continues.

Please find attached the official notification:

SAR-470_Finance Dept.(Rev.)_1407-FT