Professional Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.

State in which Professional Tax is applicable:

Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh.

 

Person responsible to deduct Professional Tax

• Employer
• Self employed Person

 

Professional Tax Registration Forms:

• Form I- For employer
• Form-II- For self-employed person

 

Amount of Professional Tax:

The maximum amount payable per annum towards professional tax is INR 2,500. The professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month. For example, PT Rate for the state of West Bengal is:

 

Slab for salaries or wages	Rate of Tax
Rs.  8500 or less (w.e.f. 01.04.14)	Nil
Rs. 8501 or more but less than Rs. 10001	Rs. 90 p.m.
Rs. 10001 or more but less than Rs. 15001	Rs. 110 p.m.
Rs. 15001 or more but less than Rs. 25001	Rs. 130 p.m.
Rs. 25001 or more but less than Rs. 40001	Rs. 150 p.m.
Rs. 40001 and above	Rs. 200 p.m.

 

Payment:

As Professional tax is a state government tax, the rules for payment of the same differs with the State. For example,

West Bengal- 20^th of every month

Tamil Nadu- 30^th September and 31^st March

Maharashtra- 20^th of every month

 

Return:

Like payment of Professional Tax, Returns to be filed for same differs with every state. For example,

West Bengal- 30^th April (Annual)

Tamil Nadu- 30^th September and 31^st March (Half Yearly)

Maharashtra- 20^th of every month (Monthly)

 

In brief:

Who is it for- All employers/ self employed

When You Need It- Within 30 days of operations

Returns to be Filed- Yes

Issuing Authority- State Government