Is professional tax mandatory in India?
Yes, professional tax is compulsory. You are required to pay if you are a salaried individual. That is you receive a regular salary for your work. However, the amount that you will have to pay towards your professional tax will depend on the state you reside in.
Who needs to pay professional tax in India?
An employer (corporates, partnership firms, sole proprietorship, etc.), also being a person carrying on trade/profession, is also required to pay professional tax on his trade/profession again subject to the monetary threshold, if any, provided by respective state's legislation.
Is professional tax refundable in India?
Synopsis. Professional tax is a tax levied by the state government and the income tax act allows an deduction of professional tax actually paid from gross total income of the individual. Unlike TDS professional tax is not refunded if the individual's net income tax liability is less than the tax amount or nil.
What is the professional service tax in India?
Professional tax is collected by the employers from the monthly salaries and the Commercial Tax Department is responsible for collecting this tax. It is then paid by them to the government failing which they can have penalties imposed on them for not collecting or failing to pay the professional tax.
Why do we pay professional tax in India?
Profession tax is levied and collected by the Commercial Taxes Department of State Governments, in some states by particular Municipal Corporations and majority of the Indian states are collecting this tax. It is a source of revenue for the government.
Which state pays the highest tax in India?
Net direct tax collection in Maharashtra stood at Rs 6.14 lakh crore in 2022-23, the highest by any state, followed by Rs 2.12 lakh crore collected in Delhi, Rs 2.05 lakh crore in Karnataka and Rs 1.07 lakh crore collected in Tamil Nadu, Minister of State for Finance Pankaj Chaudhary said in a written reply to a ...
Who is exempted from professional tax in Gujarat?
Gujarat Professional Tax Exemption
Here are the individuals who are exempt from paying professional tax in Gujarat: Disabled individuals who have to present a disability certificate to qualify for the exemption. Individuals earning up to Rs 12,000 per month as salary/wages. Senior citizens aged 65 and above.
Who is exempted from paying professional tax in Maharashtra?
Who is exempt from professional tax in Maharashtra? Senior citizens, specially-abled individuals with more than 40% disability, badli workers, and parents of specially-abled children do not have to pay professional taxes.
Who are exempted from paying professional tax in Kerala?
The individuals exempted from paying professional tax in Kerala are: Textile industry 'Badli' workers. Any mentally or permanently disabled child's or individual's parents. Members of the Navy, Air Force, and Army (according to the Navy Act of 1957, Air Force Act of 1950, and Army Act of 1950)
Is professional tax applicable in Delhi?
The Delhi State Tax on Professions, Trades, Callings and Employments Act of 1975 levies professional tax on every earning individual in Delhi. As per the New Delhi Professional Tax Act, if you earn a monthly income above Rs 50,000, you are eligible to pay this tax.
What is the penalty for non payment of professional tax in Maharashtra?
For example, the following information outlines the penalty amount imposed by the Maharashtra Government for late filing or failure to pay Professional Tax in Maharashtra. Interest @1.25% p.m.
How many states have professional tax in India?
Out of the 28 states and 6 union territories in India, professional tax is applicable in 21 states and 1 union territory.
Who is required to deduct TDS?
Any person including an individual, HUF (Hindu Undivided Family), firm and NRI (non-resident Indian), is expected to deduct tax at source, provided: Any payment made under the five heads of income or as specified under the Income Tax Act, 1961 requires you to deduct TDS.
What is the VAT rate in India?
The standard VAT rates are 18% and 12%. The reduced rate is 5%. India also has some zero-rated goods, the sale of which must still be reported on your VAT return, even though no VAT is charged.
When was professional tax started in India?
In 1949, when the professional tax was first introduced in India, the maximum amount was set at Rs. 250. This was increased to Rs. 2,500 in 1988, and since then, this amount has been kept unchanged.
Does everyone pay tax in India?
Who Needs to Pay Income Tax. Under existing rules of the IT Act, any individual/business with income irrespective of the amount earned is liable to file income tax returns. But, currently tax on income is payable only if the net taxable income for a fiscal exceeds Rs. 2.5 lakh.
What is the penalty for professional tax in Maharashtra?
Late filing of professional tax return will attract a penalty of Rs. 1,000. A penalty of 10% will apply in case of late payment of professional tax dues. Additionally, an interest on late payment can be levied at up to 1.25% per month.
Is tax higher in India or USA?
Aggregate tax collection is much higher in the US, because it is a far bigger economy than India, about ten times as large. India's budget revenues are about $190 billion, while the US has $2,450 million. That makes the US more taxed than India.
Is tax in US higher than India?
Compared to countries such as Canada, the U.K., the U.S.A. and China, the income tax rate for India is lower. While India's highest tax rate is 42.74%, Canada's highest rate is 54.0%. While the U.K. and China both levy their highest taxes at 45%, the highest tax rate in the U.S.A. is 50.3%.
Which state has no income tax in India?
Sikkim, a small state in northeastern India, has been exempted from paying income tax, making it unique in the country. While every taxpayer in India is mandated to file their income tax returns annually, Sikkim has its own tax laws, which were set up in 1948, and it has followed these laws since 1975.
What is the PT limit in Gujarat?
What is the professional tax amount in Gujarat? The maximum annual professional tax liability is Rs 2500. On a monthly basis, individuals with a gross salary falling between Rs 13,500 are required to pay Rs 200.
What is the professional tax in Ahmedabad?
Professional tax registration in Ahmedabad can be obtained through IndiaFilings. The maximum amount to be paid as professional tax is Rs. 2500.
Who should pay professional tax in Kerala?
As per the Kerala Municipality Amended Act, 2015, it is mandatory for all employees who are drawing a half-yearly salary of more than Rs. 12,000 to pay Kerala professional tax. This tax is to be paid to the respective municipal corporation in which the company or firm is situated.
Is professional tax applicable in Rajasthan?
The State Government levies the professional tax on the professionals and members. The levy and governance of professional tax in Rajasthan is regulated under the Rajasthan State Tax on Professions, Trades, Callings and Employments Act, 1975.
Is professional tax applicable in Uttar Pradesh?
In some states, anybody earning over Rs 4,166 a month needs to pay professional tax, whereas in others only when a person earns over Rs 3 lakh a month do they need to pay this tax. Professional tax is not levied in any union territory and some states such as Delhi, Haryana, Uttar Pradesh and Uttarakhand.
