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Professional-Tax-slab-and-their-applicability

 

Professional Tax slab and their applicability

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6

1. Introduction-

Professional tax levied under section 276(2) of Indian Constitution. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax.
The maximum amount of Professional Tax is restricted to ₹ 2,500. The amount paid as Professional Tax is allowed as a deduction under section 16 of the Income Tax Act, 1961 and the income tax on the balance amount shall be calculated as per the tax slab.

 

2. Registration under Professional Tax-

These states/union territories where professional tax payment is applicable the employer should apply for registration within 30 days of employing worker/staff in a business or in case of professionals (non-employed), 30 days from start of the practice.

Penalty has been imposed in case of delay in obtaining the registration certificate, Rs. 5 per day in case of the employer and Rs. 2 per day in case of a non-employed individual shall be imposed.

 

3. Liability to pay professional tax-

  • In case of salaries/ wages, the professional tax is to be deducted by the employer from the salary/wages of employee every month, and to be deposited with the state government with in the time limit as prescribed. If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).
  • In case of others, the professional tax is liable to pay by the person himself individually.
 

Example 1-

Mr. X has Salary of Rs. 3, 00,000 and pay professional tax of Rs. 1,500 during the year. What is the treatment of professional tax?

Answer-

Particulars

Amount (Rs.)

Income from Salary-

Salary Income

3,00,000

Less: Deductions-

 

Professional tax paid

1,500

Income from Salary

2,98,500*

*Note- Rs. 2, 98,500 is taxable as Income from salary under Income Tax

 

5. States/Union territories where Professional Tax is applicable or States/Union territories where professional tax is not applicable-

There are 29 states or 7 union territories i.e. total of 36’s in India, out of which 18 states or 1 union territory in which professional tax is applicable or 11 states or 6 union territories in which professional tax is not applicable. The details are as under-

S. No.

Applicable State/ Union Territories

Not Applicable State/ Union Territories

1

Andhra Pradesh

Andaman & Nicobar Islands

2

Assam

Arunachal Pradesh

3

Bihar

Chandigarh

4

Gujarat

Dadra and Nagar Haveli

5

Karnataka

Daman and Diu

6

Odisha

Delhi

7

Meghalaya

Haryana

8

Madhya Pradesh

Himachal Pradesh

9

Maharashtra

Jammu & Kashmir

10

Sikkim

Lakshadweep

11

Tamil Nadu

Rajasthan

12

Telangana

Uttar Pradesh

13

Tripura

Uttaranchal

14

West Bengal

Mizoram

15

Punjab

Nagaland

16

Pondicherry

Chhattisgarh

17

Jharkhand

Goa

18

Manipur

 

19

Kerala

 

 

 

6. Rates of professional tax in applicable states/union territories-

S. No.

Name of States

Amount of Salary/Wages per month (in Rs.)

Amount of Professional Tax per month (in Rs.)

1

Andhra Pradesh

Up to Rs. 15,000

Nil

Rs. 15001 to 20,000

150/-

Above Rs. 20,000

200/-

2

Assam

Up to Rs. 10,000

Nil

Rs. 10,000 to 15,000

150/-

Rs. 15001 to 25,000

180/-

Above Rs. 25,000

208.33 (say total Rs. 2,500 yearly)

3

Bihar

Up to Rs. 25,000

Nil

Rs. 25,001 to 41,666

83.33 (say total Rs. 1,000 yearly)

Rs. 41,667 to 83,333

166.67 (say total Rs. 2,000 yearly)

Above Rs. 83,334

208.33 (say total Rs. 2,500 yearly)

4

Gujarat

Below Rs. 6,000

Nil

Rs. 6,000 to 8,999

80/-

Rs. 9,000 to 11,999

150/-

Rs. 12,000 and above

200/-

5

Karnataka

Up to Rs. 15,000

Nil

Above Rs. 15,000

200/-

6

Odisha

Up to Rs. 5,000

Nil

Rs. 5,001 to 6,000

30/-

Rs. 6,001 to 8,000

50/-

Rs. 8,001 to 10,000

75/-

Rs. 10,001 to 15,000

100/-

Rs. 15001 to 20,000

150/-

Above Rs. 20,000

200/-

7

Meghalaya

Up to Rs. 4,166

Nil

Rs. 4,167 to 6,250

16.67 (say total Rs. 200 yearly)

Rs. 6,251 to 8,333

25/-

Rs. 8,334 to 12,500

41.67 (say total Rs. 500 yearly)

Rs. 12,501 to 16,666

62.50/-

Rs. 16,667 to 20,833

83.33 (say total Rs. 1,000 yearly)

Rs. 20,834 to 25,000

104.17 (say total Rs. 1,250 yearly)

Rs. 25,001 to 29,166

125/-

Rs. 29,167 to 33,333

150/-

Rs. 33,334 to 37,500

175/-

Rs. 37,501 to 41,666

200/-

Above Rs. 41,666

Rs. 208/-per month (in the month of February i.e. Rs. 212/-)

8

Madhya Pradesh

Up to Rs. 18,750

Nil

Rs. 18,751 to 25,000

125/-

Rs. 25,000 to 33,333

166.67 (say total Rs. 2,000 yearly)

Above Rs. 33,333

Rs. 208/-per month (in the month of February i.e. Rs. 212/-)

9

Maharashtra

For Men

Up to Rs. 7,500

Nil

Rs. 7,501 to 10,000

175/-

Above Rs. 10,000

Rs. 200/-per month (except in the month of February i.e. Rs. 300/-)

For Women

Up to Rs. 10,000

Nil

Above Rs. 10,000

Rs. 200/-per month (except in the month of February i.e. Rs. 300/-)

10

Sikkim

Up to Rs. 20,000

Nil

Rs. 20,001 to 30,000

125/-

Rs. 30,001 to 40,000

150/

Above Rs. 40,000

200/-

11

Tamil Nadu

Up to Rs. 21,000 (Half Yearly)

Nil

Rs. 21,001 to 30,000 (Half yearly)

135/- (Half Yearly)

Rs. 30,001 to 45,000 (Half Yearly)

315/- (Half Yearly)

Rs. 45,001 to 60,000 (Half Yearly)

690/- (Half Yearly)

Rs. 60,001 to 75,000 (Half Yearly)

1025/- (Half Yearly)

Above Rs. 75,000 (Half Yearly)

1250/- (Half Yearly)

12

Telangana

Up to Rs. 15,000

Nil

Rs. 15,001 to 20,000

150/-

Above Rs. 20,000

200/-

13

Tripura

Up to Rs. 7,500

Nil

Rs. 7,501 to 15,000

150/-

Above Rs. 15,000

Rs. 208/-per month (in the month of February i.e. Rs. 212/-)

14

West Bengal

Up to Rs. 10,000

Nil

Rs. 10,001 to 15,000

110/-

Rs. 15,001 to 25,000

130/-

Rs. 25,001 to 40,000

150/-

Above Rs. 40,000

200/-

15

Punjab

Salary/wages exceeds Rs. 2,50,000 per annum

200/- per month

Income from Business or Profession exceeds Rs. 2,50,000 per annum

200/- per month

16

Pondicherry

Up to Rs. 3,500

Nil

Rs. 3,501 to 5,000

16.66 per month (say total Rs. 200/- yearly )

Rs. 5,001 to 9,000

40/-

Rs. 9,001 to 10,000

150/-

Rs. 10,001 to 12,500

126.66 per month (say total Rs. 200/- yearly )

Above Rs. 12,500

182.50 per month

17

Jharkhand

Up to Rs. 25,000

Nil

Rs. 25,001 to 41,666

100/-

Rs. 41,667 to 66,666

150/-

Rs. 66,667 to 83,333

175/-

Above Rs. 83,333

Rs. 208/-per month (in the month of February i.e. Rs. 212/-)

18

Manipur

Up to Rs. 4,166

Nil

Rs. 4,167 to 6,250

100/-

Rs. 6,251 to 8,333

167/-

Rs. 8,334 to 10,416

200/-

Above Rs. 10,416

Rs. 208/-per month (in the month of February i.e. Rs. 212/-)

19

Kerala

Below Rs. 2,000

Nil

Rs. 2,000 to 2,999

20/-

Rs. 3,000 to 4,999

30/-

Rs. 5,000 to 7,499

50/-

Rs. 7,500 to 9,999

75/-

Rs. 10,000 to 12,499

100/-

Rs. 12,500 to 16,666

125/-

Rs. 16,667 to 20,833

166/-

Above Rs. 20,833

Rs. 208/-per month (in the month of February i.e. Rs. 212/-)

 

7. Professional Tax Exemption, where it is not applicable-

  • An Individual above the age of 65 years but the age limit for Karnataka is 60 years.
  • An individual suffering from a permanent physical disability (including blindness).
  • A person suffering 40% or more of permanent physical disability or blindness.
  • Parent or guardian of a physically challenged or mentally retarded child.

 

8. Clause of Penalty–

  • Penalty for late payment of Professional Tax –will be charged @ 2% per month of tax amount.
  • Penalty for non-payment of Professional Tax –will be additional charged @ 10% of tax amount.
  • Penalty for non-filing of return- -If the return is not filed within 1 month from the due date Rs. 1,000 will be charged otherwise Rs. 2,000 will be charged.



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