What is professional tax rule in India?
What is Professional Tax? Professional tax is a direct tax that is deducted from your gross salary by your employer. This tax is levied by the state government and thus can vary depending on the state you live in. The maximum limit of which you can be charged is Rs 2500.
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.
How can I avoid professional tax in India?
- Parents or guardians of children with a mental disability or permanent disability.
- An individual suffering from a permanent physical disability including blindness.
- Any individual of above 65 years.
What is the professional tax rate in India?
| Monthly Income | Professional Tax Every Month |
|---|---|
| Below Rs. 15,000 | NIL |
| From Rs. 15,001 – Rs. 20,000 | Rs. 150 |
| More than Rs. 20,000 | Rs. 200 |
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.
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.
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.
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.
Can I avoid tax in India?
There are numerous lawful ways to save tax under the Income Tax Act of 1961, entailing some tax-saving mutual funds, NPS, insurance premiums, medical insurance, home loan, and many others.
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.
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.
Does Delhi have professional tax?
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 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?
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)
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.
What is the new PT rule in Maharashtra?
| Men Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to Rs.7,500 | Nil |
| Rs. 7,501 to Rs.10,000 | Rs. 175 per month |
| Above Rs. 10,000 | Rs. 200 per month except for the month of February and Rs. 300 for the month of February |
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 ...
What is PF and PT?
Statutory contributions like Provident Fund (PF), Labor Welfare Fund (LWF), Employees' State Insurance (ESI), and Professional Tax (PT) have to be filed with the relevant bodies to ensure that the employees can get the benefits that this scheme offers and also for remaining compliant.
What is the professional tax 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.
Why would someone use a tax professional?
A tax professional can look at your past returns to see if any deductions were missed and, if so, amend them for you. You can reduce your risk of an audit. And, if you are audited or the IRS starts asking questions you can't easily answer, a professional tax preparer knows how to deal with the IRS.
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.
Are professional services taxable in India?
Every person making a payment in the nature of fees for professional or technical services is liable to deduct tax at source.
What is the new rule of professional tax in Gujarat?
| Monthly Income of Taxpayer | Professional Tax Amount Payable |
|---|---|
| For employees earning a salary up to Rs. 5,999 | Nil |
| For employees earning between Rs. 6,000 to Rs. 8,999 | Rs. 80 |
| For employees earning between Rs.9,000 to Rs. 11,999 | Rs. 150 |
| For employees earning more than Rs. 12,000 | Rs. 200 |
Who is liable to pay professional tax 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.
Who collects professional tax in Gujarat?
Thereafter, from 01-04-2008, Gandhinagar Municipal Corporation has been entrusted with the task of collecting and collecting taxes as a designated authority.
