What is Professional Tax?? Please help

Anupatiyal · #1 02-05-2009, 05:47 PM

Dear Friends

I want to know about Professional Tax in detail like

What is Professional Tax?
How is it calculated?
Criteria of deducting it?
Slab rates of PT?
Benefits of PT
Who are entitled for this etc?

If u guys have more knowledge apat from the points stated above kindly post your answers and help me in understanding the concept.

Hoping an earliest reply!
Thanks in advance
Anu

K.Ravi · #2 02-05-2009, 08:55 PM

People dont know about professional tax and call themselves as professionals

hehehehe
wot a joke wot a joke ,,

escapeeeeee

sorry about that friend tell me your location

Anupatiyal · #3 20-05-2009, 02:37 PM

Hello Mr. Whosoever u r i am not interested in knowing about your profile but just would like to say tht if u do not have the answer dont try to comment on to same . If u think u r a professiona & know abt. PT then i am the strong witness of it & whosever wud look after your comment will also get added in to the witness list.

I did not except this from this forum at least.

Anu

manasranjanpal · #4 20-05-2009, 02:57 PM

Dear Miss. Anu,

Below i have given Professional Tax Background Details, hope it will helpful for you.

Thanking You

Manas Ranjan Pal

Mon-9052155443

Professional Tax Background Details

September 13, 2008, Rediff

Your Professional Tax is likely to triple from Rs 2,500 a year to Rs 7,500 from the next financial year.

With a view to increasing the revenues of state governments and local bodies, the central government has decided to raise the ceiling on professional tax.

Since a Constitutional amendment is required to enable any increase in professional tax, the government has drafted a Bill for the 109th amendment of the Constitution. The Bill will be introduced in the next session of Parliament that commences on October 17.

Professional tax is levied by state governments or local municipal bodies and is in addition to the income tax that the central government collects from you.

Article 276 of the Constitution empowers the state to levy the tax in respect of profession, trade, calling and employment, but it also fixes the ceiling that can be amended only through the Constitutional amendment by Parliament.

Currently, 24 Indian states collect revenue through this source and most of them have already imposed the maximum permissible levy of Rs 2,500 a year.

Uttar Pradesh, Uttaranchal, Jharkhand and Arunachal Pradesh are the only exceptions and have not levied professional tax.

Goa, Haryana, Himachal Pradesh, Kerala, Rajasthan, Bihar, Punjab and Tamil Nadu have empowered their municipal bodies to collect professional tax

while Jammu & Kashmir, Maharashtra, Madhya Pradesh and Andhra Pradesh impose this tax themselves.

State assemblies have enacted either the state law or the local body law to enable imposition of this tax. Once Parliament adopts the amendment in the Constitution to raise the ceiling to Rs 7,500 a year, state assemblies will amend their own laws to clamp the tax.

The original ceiling on the professional tax, as prescribed in the Constitution passed by the Constituent Assembly, was Rs 250 a year. It was raised to Rs 2,500 a year in 1988 and since then both the 11th and 12th Finance Commission have called for its upward revision.

Following States Collects Professional Tax on the following Basis:

MONTHLY HALF-YEARLY YEARLY

Andhra Pradesh Tamilnadu Madhya Pradesh
Maharshtra Kerala
West Bengal
Orissa
Karnataka
Gujarat
Rajsthan

sam_dave · #5 20-05-2009, 03:12 PM

Mr. Ravi,

I dont really know what is the definition of professional for people like you. If you dont know the answer no need to post and if you post, mind it to be sensible.

It is hard to explain the definition of professional to a person like you. But am giving it a try.

Professional is a person who is completely rationale in maintaining the work culture and environment with his knowledge, skills, abilities, interpersonal relations and performance in order to preserve his and organization's growth path.

I know it would be hard for you to understand Mr. K. Ravi.

Dont throw your insights on this one. You'll lose boy.

Stay outta it.

Dhanesh Kumar · #6 20-05-2009, 05:48 PM

Dear All

Below are some point on professional Tax -

What is Proffesional Tax?
Professional tax or employment tax is a state-based tax. It is allowed as a deduction from the gross income before computing the tax.

The set of professional tax slabs in India are different for all the 28 states in India and some of the states have formulated different professional tax slabs for men, women, and the senior citizens of the respective states.

Why it is imposed?
The state government of each state is empowered with the responsibility of structuring as well as formulating the respective professional tax criteria and they are also required to collect funds through professional tax.
The professional taxes are charged on the incomes of individuals, profits of business or gains in vocations. The professional tax is charged as per the List II of the Indian Constitution. The professional taxes are classified under various tax slabs in India.

Tax Slabs in India

The above URL could be visited for the slabs of different states.

Regards
Dhanesh