Professional Tax is levied and collected by the State Government at various slab rates on every individual who earns his livelihood by the way of profession, trade, calling or employment. It is one such tax which differs from state to state. It is restricted to a maximum limit of ₹ 2,500 and allowed as a deduction under section 16 of the Income Tax Act, 1961.
Professional tax is a tax levied and collected by the State Government on every single earning individual who earns a living through any medium which can be a profession, trade, calling or employment. However, it should not be mixed with the professionals that means doctors, chartered accountants, lawyers, etc. Clause (2) of Article 276 of the Constitution of India provides the right to the State Government for levy and collection of professional tax or tax on the profession.
As the rights remain with the State Government, certain states do not charge professional tax too. The tax is levied based on the slab rates depending upon the income of the individual. However, the maximum amount any State can levy as 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 slabs applicable.
In case of the salaried employees, the professional tax needs to be deducted from the salary by the employer on monthly basis and paid to the state government. If an individual is self-employed or in case he has no employer, the individual himself is liable to pay the professional tax.
However, a non-employed individual can register for professional tax by applying through a form. The registration number is issued after successful registration. Professional Tax can be paid under this registration number at various banks.
You can calculate your Professional Tax liability on the basis of your gross salary and tax slab prescribed by the state government levying Professional Tax. Currently, only 15 states levy the Professional Tax in India. The slab rates differ from state to state.
e.g., in Andhra Pradesh, the Professional Tax rates are as follows:
If you are liable to Professional tax in Maharashtra, you can easily pay it online. If your annual liability of Professional Tax crosses Rs 50,000, you need to make tax payment online as well as file return every month compulsorily. These two tasks must be done by the end of the subsequent month. However, if your annual Professional Tax liability does not exceed Rs 50,000, you can pay the total tax in full at the end of the FY and file the return. To make e-payment of Professional Tax, please follow the step-by-step procedure as explained below:
ID as Form_VIII. Choose appropriate financial year and period. In the “Location” box, choose the place of your registration.Enter the amount of tax payable and mobile number. Now, click on “Proceed for Payment”
Professional tax is not applicable where:
However, it should be noted that the above provisions can vary in different states.
Professional Tax Slab 2018-19 State-wise | ||
Karnataka | Telangana | Tamil Nadu |
West Bengal | Gujarat | Maharashtra |
Odisha | Chattisgarh | Madhya Pradesh |
Andhra Pradesh | Bihar | Assam |
Sikkim | Meghalaya | Tripura |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 7,500/- for men | NIL |
Up to ₹ 10,000/- for women | NIL |
From ₹ 7,500/- to ₹ 10,000/- | ₹ 175/- |
₹ 10,000/- and above | ₹ 200/- (₹ 300/- for the month of February) |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 15,000/- | NIL |
Above ₹ 15,000/- | ₹ 200/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 5,999/- | NIL |
From ₹ 6,000/- to ₹ 8,999/- | ₹ 80/- |
From ₹ 9,000/- to 11,999/- | ₹ 150/- |
₹ 12,000/- and Above | ₹ 200/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 8,500/- | NIL |
From ₹ 8,501/- to ₹ 10,000/- | ₹ 90/- |
From ₹ 10,001/- to ₹ 15,000/- | ₹ 110/- |
From ₹ 15,001/- to ₹ 25,000/- | ₹ 130/- |
From ₹ 25,001/- to ₹ 40,000/- | ₹ 150/- |
Above ₹ 40,000/- | ₹ 200/- |
Annual salary (₹) | Tax per month (₹) |
Up to ₹ 1,50,000/- | NIL |
From ₹ 1,50,001 to ₹ 1,80,000/- | ₹ 125/- |
Above ₹ 1,80,000/- | ₹ 212/- |
Half yearly salary (₹) | Tax per 6 months (₹) |
Up to ₹ 21,000/- | NIL |
From ₹ 21,001 to ₹ 30,000/- | ₹ 100/- |
From ₹ 30,001 to ₹ 45,000/- | ₹ 235/- |
From ₹ 45,001 to ₹ 60,000/- | ₹ 510/- |
From ₹ 60,001 to ₹ 75,000/- | ₹ 760/- |
Above ₹ 75,000/- | ₹ 1095/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 15,000/- | NIL |
From ₹ 15,001/- to ₹ 20,000/- | ₹ 150/- |
Above ₹ 20,000/- | ₹ 200/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 5,000/- | NIL |
From ₹ 5,001 to ₹ 6,000/- | ₹ 30/- |
From ₹ 6,001 to ₹ 8,000/- | ₹ 50/- |
From ₹ 8,001/- to ₹ 10,000/- | ₹ 75/- |
From ₹ 10,001/- to ₹ 15,000/- | ₹ 100/- |
From ₹ 15,001/- to ₹ 20,000/- | ₹ 150/- |
Above ₹ 20,000/- | ₹ 200/- |
Annual salary (₹) | Tax for the year (₹) |
Up to ₹ 3,00,000/- | NIL |
From ₹ 3,00,001/- to ₹ 5,00,000/- | ₹ 1,000/- |
From ₹ 5,00,001/- to ₹ 10,00,000/- | ₹ 2,000/- |
Above ₹ 10,00,000/- | ₹ 2,500/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 15,000/- | NIL |
From ₹ 15,001/- to ₹ 20,000/- | ₹ 150/- |
Above ₹ 20,000/- | ₹ 200/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 10,000/- | NIL |
From ₹ 10,001/- to ₹ 15,000/- | ₹ 150/- |
From ₹ 15,001/- to ₹ 25,000/- | ₹ 180/- |
Above ₹ 25,000/- | ₹ 208/- (₹ 212/- for the month of February) |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 20,000/- | NIL |
From ₹ 20,001/- to ₹ 30,000/- | ₹ 125/- |
From ₹ 30,001/- to ₹ 40,000/- | ₹ 150/- |
Above ₹ 40,000/- | ₹ 200/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 4,166/- | NIL |
From ₹ 4,167/- to ₹ 6,250/- | ₹ 16.50/- |
From ₹ 6,251/- to ₹ 8,333/- | ₹ 25/- |
From ₹ 8,334/- to ₹ 12,500/- | ₹ 41.50/- |
From ₹ 12,501/- to ₹ 16,666/- | ₹ 62.50/- |
From ₹ 16,667/- to ₹ 20,833/- | ₹ 83.33/- |
From ₹ 20,834/- to ₹ 25,000/- | ₹ 104.16/- |
From ₹ 25,001/- to ₹ 29,166/- | ₹ 125/- |
From ₹ 29,167/- to ₹ 33,333/- | ₹ 150/- |
From ₹ 33,334/- to ₹ 37,500/- | ₹ 175/- |
From ₹ 37,501/- to ₹ 41,666/- | ₹ 200/- |
Above ₹ 41,666/- | ₹ 208/- (₹ 212/- for the month of February) |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 1,999/- | NIL |
From ₹ 2,000/- to ₹ 2,999/- | ₹ 20/- |
From ₹ 3,000/- to ₹ 4,999/- | ₹ 30/- |
From ₹ 5,000/- to ₹ 7,499/- | ₹ 50/- |
From ₹ 7,500/- to ₹ 9,999/- | ₹ 75/- |
From ₹ 10,000/- to ₹ 12,499/- | ₹ 100/- |
From ₹ 12,500/- to ₹ 16,666/- | ₹ 125/- |
From ₹ 16,667/- to ₹ 20,833/- | ₹ 166/- |
Above ₹ 20,834/- | ₹ 208/- (₹ 212/- for the month of February) |
Annual salary (₹) | Tax per month (₹) |
Up to ₹ 1,50,000/- | NIL |
From ₹ 1,50,001/- to ₹ 2,00,000/- | ₹ 150/- |
From ₹ 2,00,000/- to ₹ 2,50,000/- | ₹ 180/- |
From ₹ 2,50,001/- to ₹ 3,00,000/- | ₹ 190/- |
Above ₹ 3,00,000/- | ₹ 200/- |
Monthly salary (₹) | Tax per month (₹) |
Up to ₹ 5,000/- | NIL |
From ₹ 5,001/- to ₹ 7,000/- | ₹ 70/- |
From ₹ 7,001/- to ₹ 9,000/- | ₹ 120/- |
From ₹ 9,001/- to ₹ 12,000/- | ₹ 140/- |
From ₹ 12,001/- to ₹ 15,000/- | ₹ 190/- |
Above ₹ 15,000/- | ₹ 208/- (₹ 212/- for the month of February) |
STATES | UNION TERRITORIES |
Arunachal Pradesh | Andaman & Nicobar |
Haryana | Chandigarh |
Himachal Pradesh | Delhi |
Jammu & Kashmir | Puducherry |
Punjab | Dadra & Nagar Haveli |
Rajasthan | Daman & Diu |
Nagaland | Lakshadweep |
Uttaranchal | |
Uttar Pradesh |
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