Professional Tax is a Tax which is levied by the State on the Income earned by way of profession, trade, calling or employment. This form of tax was first levied in India in the year 1949 and the power of levy Professional tax has been given of the state by way of clause (2) of Article 276 of the constitution of India.
This tax is levied based on slab rates depending on the income of the indivudal. This tax is just like Income Tax except for the act that income Tax is collected by the central Government and Professional tax is collected by the State Government.
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to Rs. 7,500 | Nil |
| Rs. 7,500 - Rs. 10,000 |
Rs. 175 per month (Only for Male Employees, since for women employees it is Nil up to Salary Rs. 10000) |
| Above Rs. 10,000 | 2,500 p.a The Payment is accepted in the following method:
|
| Return Filing Periodicity | ||
|---|---|---|
| a) | If tax liability during the previous year of part therefore was less than Rs. 100000 | Annual Return on or before 31st March of the year (for salary paid for the months from 1st March to 28 February) |
| b) | Rs. 100000 or more | Monthly Returns on or before the last day of the month (Covering salary paid for the preceding month) |