Understanding Professional Tax: How Do I Apply for Deductions and What Are the Limits?

Hi Ankitha,

Could someone please tell me what professional tax is? What are the limits? How do I apply for professional tax deductions from my salary and what are the rules? I urgently need this information.

Thank you.

Hi,

It is a tax levied by the Municipal Council on a profession, trade, calling, and employment. Every company that transacts business and every person who is engaged actively or otherwise in any profession, trade, calling, or employment within the Town Panchayat on the first day of the half-year for which a return is filed shall pay a half-yearly tax at the rates specified.

Regards,
Rakesh