What Is Professional Tax and How Is It Calculated? Seeking Clarity and Insights

Understanding Professional Tax

Could anybody provide details about Professional Tax? What does Professional Tax mean, and how is it calculated? Also, what is the purpose of Professional Tax?

Regards,
LS.

Understanding Professional Tax

Can anybody give details about Professional Tax? What does Professional Tax mean, and how is it calculated? What is the purpose of Professional Tax?

Professional tax is levied by particular Municipal Corporations, and a majority of Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is Rs. 2,400, and based on your salary, there are predetermined slabs. It is paid by every member of staff employed in private companies. The employer deducts it each month and sends it to the Municipal Corporation. Professional Tax is compulsory, similar to income tax.

Thanks,
LS.

Professional tax varies from state to state. Below, I am citing some examples to show you a clear picture.

Examples: State-wise Professional Tax Slabs

Professional tax slabs:

Karnataka:
- 0-9999 = 0
- 10,000-14,999 = 150
- 15,000-above = 200

Maharashtra:
- 0-5000 = 0
- 5001-10000 = 175
- 10001-above = 200

Odisha:
- 0-5000 = 0
- 5001-6000 = 30
- 6001-8000 = 50
- 8001-10000 = 75
- 10001-15000 = 100
- 15001-20000 = 150
- 20001-above = 200

Gujarat:
- 0-3000 = 0
- 3001-6000 = 20
- 6001-9000 = 40
- 9001-12000 = 60
- 12001-above = 80

Chhattisgarh:
- 0-12500 = 0
- 12501-16667 = 150
- 16668-20833 = 180
- 20834-25000 = 190
- 25001-above = 200

Regards,
Satyajeet Padhee.

Professional Tax Slabs in Andhra Pradesh

The tax deducted on a profession should have earnings on any profession covered under Professional Tax. Here are the professional tax slabs for Andhra Pradesh:

- Up to ₹5,000 = NIL
- ₹5,001 - ₹6,000 = ₹60 PM
- ₹6,001 - ₹10,000 = ₹80 PM
- ₹10,001 - ₹15,000 = ₹100 PM
- ₹15,001 - ₹20,000 = ₹150 PM
- Above ₹20,000 = ₹200 PM

Regards,
D. Vijay Kumar
Visakhapatnam