Is professional tax still applicable in India?
Professional slab rate varies from state to state. Some of the states which currently impose a professional tax in India are West Bengal, Maharashtra, Gujarat, Andhra Pradesh, Kerala, Tamil Nadu, Karnataka, Bihar, Assam, Madhya Pradesh etc.
Is professional tax mandatory in India?
Professional tax is a state government tax imposed on anyone who makes money from any profession, trade, or job. Not every state imposes this tax. The only conditions that do not impose this tax are Arunachal Pradesh, Rajasthan, and Haryana.
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.
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 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.
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.
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 exempt from 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 mandatory in Tamilnadu?
Ans. Yes, if you are a salaried or self-employed individual who is earning a stable income, you are liable to pay professional tax in Tamil Nadu under The Tamil Nadu Municipal Laws (Second Amendment) Act, 1998.
What is the professional tax slab in Punjab?
The minimum professional tax in Punjab is Rs 175 per month for individuals drawing a monthly salary or wage of Rs 7501 to Rs 10,000 per month. However, the maximum professional tax amount cannot exceed Rs 2500 annually. Who is eligible for professional tax in Punjab? Ans.
What is the highest personal tax rate in India?
The income tax rates range between 0 and 42.74%. What is the maximum income tax* rate in India? The highest marginal income tax rate in India is 42.744%. Can I save tax on health riders for life insurance?
Is professional tax applicable in Punjab?
Professional tax in Punjab is to be paid by every earning individual of the state who is either an employee or in pursuit of any business or profession. The tax slabs, rates, and the amount collected from the taxpayers may differ according to each state but have been capped at INR 2500 per year for an individual.
Is professional tax applicable in Gujarat?
Professional tax is charged on salaried individuals and is paid to the Gujarat state government. Professional tax is deducted by the employer and the amount varies based on the employees' income. The slab rates are decided by the state government.
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.
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 pays more taxes in India and why?
Highest Taxpayer Company in India:
Tata Consultancy Services (TCS) emerged as the highest tax-paying company in India, disbursing Rs 11,536 crore in taxes during the last fiscal year. This sum accounts for 6.8% of TCS's total revenue, underscoring the company's commitment to its fiscal responsibilities.
How do I claim professional tax in India?
Only those taxpayers who have income above the basic exemption limit and paid income tax, can claim professional tax paid as a deduction and get a refund. "When individual's income exceeds the basic exemption limit, the individual can claim professional tax deduction under section 16(iii) of the Income-tax Act, 1961.
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.
Is PT applicable in Goa?
An individual who is engaged in any activity or any profession, trade, or employment has to pay professional tax in Goa.
Who is eligible for professional tax in India?
Professional tax is deducted from your gross salary along with TDS, EPF and any other deduction. However, this tax doesn't mean that it is levied only if you are in professional practice such as a doctor, lawyer etc. If you earn a salary, you are eligible to pay this tax.
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 penalty for professional tax in Gujarat?
Employers (on behalf of employees) and self-employed people are responsible for paying Professional tax on time or face a penalty of 2% per month of the total amount owed.
Is PT applicable in Rajasthan?
Professional Tax in Rajasthan can be obtained online on the State sales tax department website. Here is the procedure of the same: An application must be made in Form 1 within 30 days of becoming liable to pay the professional tax.
Is PT 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.
Is PT applicable in Chandigarh?
Professional tax is very much similar to income tax but the professional tax is collected by the state government. Professional tax registration in Chandigarh city can be obtained through IndiaFilings. The maximum amount to be paid as professional tax is Rs.
