What is Professional Tax In India and slab rate of Professional Tax

Share
What
is this professional tax in my salary slip? Does everyone pay this
professional tax? Government takes income tax then why is this professional
tax? Why there is no such professional tax in Delhi? 


 What Is PT (Professional Tax)
  • Professional tax is levied upon every
    employee of government or private organization subject to a minimum
    limit of earning.
  • It is also taken from professionals
    such as doctor, CA, lawyers and consultants.
  • Some state governments give relaxation
    to low earning people.
  • The professional tax is similar to
    income tax except it is taken by state government. Unlike income tax
    return filing you need not to file return professional tax
    return.
  • Not every state charges this tax.
  • The money collected from this tax
    should be spent on unemployed people of the states. The unemployment allowance
    is given from this collection.
  • According to law, any state,
    government can’t charge maximum Rs 2,500 per year as professional tax.
  • It is charged according to the
    income slab.
  • It is eligible for income
    tax saving. You can deduct the professional tax paid from your
    gross salary for income tax calculation. 
How PT is Paid to the State
Government
Commercial
tax department of state governments also makes the rule of professional tax.
This is the same department which collects sales tax and VAT. But the collection
of this tax goes to the municipal corporations.
It
is the duty of every employer to collect the professional tax from its employee
and deposit the total amount with the municipal corporation. The employer
deducts it from the salary of the employee every month. In some states and
municipal corporation, professional tax can be paid online as
well.  State governments have the portal for conducting this
business. The municipal corporation website also handles this operation. As
I have told no state government can charge it more than Rs 2,500 from an
employee. However, they can charge lower PT. They can also decide the slab for
different amount of PT. Hence, every state has different slabs and rates.
How You Can Pay Professional Tax
Anyone
who starts earning needs to pay professional tax. The salaried person
should not worry as their employer deducts and deposit it with the authorities.
But the self employed have to register them within 6 months of earning.
Registration is done at the sales tax offices of the district.
1.       You
need to fill an enrollment or registration form.
2.       After
the submission you will get the registration number.
3.       With
this registration number, you can go to the bank and deposit it.
4.       You
need to fill a Challan for the deposit.
Gradually
many states have shifted to the online mode. Now you can register yourself and
pay the professional tax online as well.
What If You Don’t Pay
It
is similar to not paying income tax. In this case the sales tax department
takes penal action.
  • It can charge a heavy
    penalty which can go up to double of the total PT.
  • It can charge interest for late payment
    which can go up to 2% per month.
RECOMMENDED READ  Tax on PF withdrawal if service is lesser than 5 continuous years

States Charging PT
Andhra
Pradesh, Assam,
Chhattisgarh, Gujarat, Maharashtra, Meghalaya, Madhya Pradesh, Orissa,
Karnataka, Kerala, Tamil Nadu, Tripura and West Bengal.
States Not Charging PT
Haryana,
Uttar Pradesh, Rajasthan, Punjab, Delhi and others do not levy professional
tax.
Professional Tax in Maharashtra
Maharashtra
uses a full limit of professional tax. Here, Most of the employees
pay Rs 2,500 annually as PT. It has given some relaxation to those who earn
very less or involved in petty jobs. All other wage earners and white collared
professionals are charged Rs 2,500 Annually.
Monthly Salary
Professional Tax Rate Per
Month
Up to Rs 7,500 (Rs
10,000 For Women)
Nil
From Rs 7,500-
10,000
175
Above Rs 10,000
Rs 200 per
month, but Rs 300 in February
In
Maharashtra you can save 20% of professional tax if you pay in lump sum for
five years. For five years the total tax has been Rs 12,500 but you have
to pay only Rs 10,000.
You
can see detailed, professional tax slab rate of Maharashtra in this
page.
Professional Tax in Karnataka
In
Karnataka, you pay less PT than Maharashtra. It is Rs 2,400 per year
for salaried who earns more than Rs 15,000/month.  Those who earns less
than Rs 10,000, there is no need to pay it. The professional tax slab rate of
Karnataka 
is given below
Monthly Salary
Professional Tax Rate Per
Month
Up to Rs 15,000
Nil
Above Rs 15,000
Rs 200
The
above rate is for salaried person. For the self employed, professionals and
businessman there are different tax slabs. If differs according to
the profession. To know the exact tax slab rate visit the commercial tax
department website of Karnataka government. The karnataka government does not
charge professional tax from the senior citizens.
If
you don’t pay professional tax on time, You have to give interest of
1.25%/month. Also, you may have to pay maximum penalty of 50% of
the total due amount.
You
can online register yourself for PT in Karnataka. You can also pay
it online. Visit E-prerana portal
for professional tax related services.
Professional Tax in West Bengal
West
Bengal Government also charges this tax, but it is not very high for
low income group. Professional tax of Rs 200/month is for those who gets a
salary of more than Rs 40,000/month. Those who get salary less than
Rs 8,500/month are not liable to pay tax.
Monthly Salary
Professional Tax Rate Per
Month
Up to 8,500
Nil
8,501- 10,000
90
10,001-15,000
110
15,001 – 
25,000
130
25,001 – 40,000
150
Above 40,000
200
The
Above  slab rate is for salaried person. For All other self employed and
professionals different rates are applicable. These rates can be found on the commercial
tax website of West Bengal Government. There is also a FAQ section in
the portal which is very helpful. You can also enroll and pay the
professional tax online in West Bengal. Even, HDFC bank also gives
professional tax payment  facility from its portal.
Late
payment of tax attracts interest @ 1 % per month in West Bengal.
Professional Tax in Madhya Pradesh
In
Madhya Pradesh it is charged on the yearly salary. However, if
your salary is less than 1,50,000/year, you need not to pay it. If you earn
more than 15,000 per month i. e. 1,80,000 annually you have to pay PT of
Rs 212/month in Madhya Pradesh.
Yearly Salary
Professional Tax Rate Per
Month
Up to 1,50,000
Nil
1,50,001 – 1,80,000
125
Rs. 1,80,001 and
above
212
At
the failure of non payment  Madhya Pradesh government can charge a penalty
of 2% per month.
Registration
for professional tax can be done online in Madhya Pradesh. You can also pay
the professional tax online through its Cyber treasury portal.
Professional Tax in Tamil Nadu
You
have to pay this tax in Tamilnadu as well. However, The process of professional
tax payment in Tamilnadu is slightly different. It is charged half
yearly in Tamilnadu
. The assessment of income is also done half yearly. The
slab rate  in Tamilnadu is also given half yearly. Half yearly
professional tax is collected from the salary of August and January.
Half Yearly Salary
Professional Tax Rate Per 6
Months
Up to 21,000
Nil
21,001 – 30,000
100
30,001 – 45,000
235
45,001 – 60,000
510
60,001 – 75,000
760
75,001 and above
1095
It
is difficult to submit  PT  online in Tamilnadu. HDFC
bank website does mention the e-payment but there is no way forward
through the Tamilnadu government’s commercial taxes website. If you know the
proper way of online deposit of professional tax in Tamilnadu, please add in
the comments section.
You
can download the form from the website of Chennai corporation and Coimbatore
corporation. Chennai corporation website also provides the professional to
download.
Professional Tax in Andhra Pradesh
In
Andhra Pradesh you don not need to pay it if your salary is less than Rs
15,000/month. The slab rate of salaried and wage earners is given below.
Monthly Salary
Professional Tax Rate Per
Month
Up to Rs 15,000
Nil
From Rs 15,001-
20,000
Rs 150
Above Rs 20,000
Rs 200
Those
who does not earn a salary or regular wage will have to pay PT according
to the different slab rate. This professional tax slab rate can be found from this link.
In
Andhra Pradesh you can pay professional tax online. First You have to register
on the Andhra Pradesh Government commercial tax portal
. After the
registration you can pay the PT online.
Professional Tax in Gujarat
Gujarat
is the one state which charges low professional tax. You need not to pay
it if your salary is less than Rs 3,000/month. But Gujarat levies maximum
Rs 80/month as  PT.
Below
is the table according to the income slab in Gujarat.
Monthly Salary
Professional Tax Rate Per
Month
Less than Rs 3,000
Nil
3,000-6,000
Rs 20
6,000 – 9,000
Rs 40
9,000- 12,000
Rs 60
Above 12,000
Rs 80
The
above slab rate is for salaried or wage earner. There is a separate professional tax schedule for professionals, self employed and
businessman.
You
can find all the forms related to PT from the website of commercial
taxes, Gujarat.
If
you work within the limit of the Ahmadabad municipal corporation, you can also pay
professional tax online. However this service is for only business
establishments.
Professional Tax In Odissa
Odissa
has many slabs of it. It starts from Rs 30/month and goes up to Rs 200/month.
Monthly Salary
Professional Tax Rate Per
Month
Up to 5,000
Nil
5,001 – 6,000
30
6,001 –8,000
50
8,001 – 10,000
75
10,001 – 15,000
100
15,001 –20,000
150
Above 20,000
200
The
above slab rate is for salaried.
You
can do online registration for professional tax in Odisha. Payment of
professional tax can be also done online.
Professional Tax in New Delhi
In
Delhi there is no professional tax. However, Municipal corporation of Delhi has
proposed to levy it on those who earn more than Rs 30,000/month.

RECOMMENDED READ  DELHI VAT - (Circular No. 41) Sealing and De-Sealing of Premises

Leave a Reply

Written by

Optimization WordPress Plugins & Solutions by W3 EDGE
%d bloggers like this: