Apr 212015
 

An overview on Professional Tax

Meaning of professional tax:

Professional Tax is the tax charged by the state governments in India.

Any one earning an income from salary or any one practicing a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. Different states have different rate and method of collection. Following states impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh etc. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.

Professional tax is levied by particular Municipal Corporations. The maximum amount payable per year is Rs.2,500/- and in line with your salary, there are predetermined slabs every state acts.

Applicability of Professional Tax as per the Constitution of India:

Article 276 of the Constitution of India lays down that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act.”

As the different states have its own act for its applicability, levy, collection and assessment hence it is imperative to provide you a list of states where professional tax is applicable and acts passed in those states to ritualized its collection.

Here a list of states with enactments passed for effective implementation of professional tax administration is provided for your ready reference.For more information on professional tax slab, please refer to our other blog on the topic.

 Professional Tax in various States

States where professional tax is implemented

1.Andhra Pradesh
2.Assam
3.Bihar
4.Chattisgarh
5.Gujarat
6.Karnataka
7.Kerala
8.Madhya Pradesh
9.Maharashtra
10.Manipur
11.Meghalaya
12.Mizoram
13.Orissa
14.Puducherry
15.Tamil Nadu
16.Tripura
17.Jharkhand
18.Punjab
19.West Bengal
20.Himachal Pradesh
21.Jammu & Kashmir
22.Nagaland
23.Sikkim
24.Rajasthan
25.Telangana

States where professional tax is not implemented

26.Arunachal Pradesh
27.Delhi
28.Goa
29.Haryana
30.Uttar Pradesh
31.Uttaranchal
32.Andaman & Nicobar
33.Chandigarh
34.Daman & Diu
35.Dadra & Nagar Haveli
36.Lakshadeep

Sensys

  4 Responses to “An overview on Professional Tax”

  1. Is there any order (any document) by which Professional tax was abolished in Uttar Pradesh?

  2. Sir, we have incorporated our company in Jan 2016 and commenced our business from April 2016 and registered for PTAX in April. In 2nd june i received a msg from comtax department that ” You are defaulter of professional tax return for 2015-16, please file the return immediately.” what should i do now..

  3. Dear Experts

    Can you please give the Karnataka Govt’s current Professional Tax Slab for Salary.

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