Professional Tax - Wikipedia


** Professional Tax **

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*Professional tax* is the tax by the state governments in India. Anyone
earning an income from salary or anyone practicing a profession such as
chartered accountant, company secretary, lawyer, doctor etc. are required
to pay this professional tax. Different states have different rates and
methods of collection. In India, professional tax is imposed at the state
level. However, not all states impose this tax. The states which impose
professional tax are Karnataka, Bihar, West Bengal, Andhra Pradesh,
Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, [[]], Kerala,
Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim. 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 and
majority of the Indian states impose this duty. It is a source of revenue
for the government. The maximum amount payable per year is INR 2,500 and in
line with tax payer's salary, there are predetermined slabs. It is also
payable by members of staff employed in private companies. It is deduced by
the employer every month and sent to the Municipal Corporation. It is a
mandatory to pay professional tax. The tax payer is eligible for income tax
deduction for this payment.^[1]

Applicability of Professional Tax as per the Constitution of India: Article
276 of the Constitution of India provides that “there shall be levied
and collected a tax on professions, trades, callings and employments, in


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