Who should pay professional tax in India?
If you are employed and earn a regular salary, you are required to pay professional tax. You must have seen the term professional tax in the salary slips that you receive every month. It is written below your gross salary, allowance, and HRA.
Who needs to pay professional tax in India?
According to the Professions, Trades, Callings and Employment Act 2000, all professionals who are earning their income by carrying out their practice in a chosen specified field, such as a doctor, chartered accountant, medical professional, technology expert, lawyer, or more, are entitled to pay professional tax.
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.
How is professional fees taxed in India?
According to Section 194J of Income Tax Act, any person (other than an individual or a Hindu Undivided Family) making payment to a resident for professional or technical services is required to deduct TDS at the rate of 10% or 2% as applicable of the amount paid or credited to the recipient.
Who should not pay tax in India?
Advantages of Filing Income Tax Return (ITR)
Tax returns should be filed by an individual who has a taxable income. If you are below 60 years of age and have an income up to Rs. 2.5 lakh, you are exempted from paying income tax.
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.
What is the limit of professional tax in India?
A maximum of Rs. 2,500 can be levied as professional tax on any person per financial year. According to Section 16 (iii) of the Income Tax Act 1961, the profession tax paid by an employee is allowed as a deduction from his/her gross salary income.
Is professional tax still applicable in India?
In a nutshell, professional tax will be applicable if either the branch office where the employee is working or the office paying salary is registered as per the state laws. If the head office is registered but not the branch office or office paying salary, then professional tax will not be applicable.
Who is exempted from 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.
Can I avoid tax in India?
The purpose of Section 80C is to encourage savings and investments by exempting from tax any interest paid or credited on money borrowed for lending to a person in India. This section also provides a deduction at source for an amount equal to 10% of the total interest payable under section 8 of the Income Tax Act 1961.
What is the limit of professional fees?
What is the threshold limit for 194J professional fees? The threshold limit for deducting tax is ₹30,000. The tax must be removed if the professional and technical services payment is more significant than ₹30,000 during the year. Please note this ₹30,000 maximum limit applies to each item or payment independently.
What are considered professional fees for taxes?
Legal and Professional Service - Amounts paid for services related to your business that were not paid to contractors or employees. This can include services such as tax advice, business related consultation fees, branding services, etc.
Which state pays the highest tax in India?
Highest Taxpayer State in India
Maharashtra tops the chart of the highest tax-paying states in India.
Why billionaires don t pay taxes in India?
Currently billionaires effectively pay far less personal tax than other taxpayers of more modest means because they can park wealth in shell companies sheltering them from income tax, the group said in its 2024 Global Tax Evasion Report.
Which city in India is tax free?
The Ministry of Finance is the prime authority that announces changes in the income tax slab during the country's annual budget which is presented on 1 February. However, there's one Indian state that is exempted from paying income tax--it is Sikkim.
At what salary do I pay tax in India?
Any Indian person under the age of 60 who earns more than Rs 2.5 lakh is required to pay income tax.
What is professional tax in Delhi?
| Monthly Gross Salary | Amount Payable as Professional Tax |
|---|---|
| Up to Rs. 7500 | Nil |
| Rs.7501 to Rs.10,000 | Rs.175 Per month |
| Above Rs.10,000 | Rs. 2500 per annum. Can be paid in either way. Rs.200 per month except for February Rs.300 for February. |
What is professional tax certificate in India?
Professional Tax Registration Certificate and Compliance. Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade.
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 applicable in Punjab?
Ans. Payment of professional tax is mandatory in Punjab. If you earn your living from employment or are self-employed, you are liable to pay professional tax.
Who is liable to pay professional tax in Maharashtra?
Professionals working in government or non-government sectors, doctors, lawyers, chartered accountant- they all are responsible for paying professional tax in Maharashtra and get a certificate of Certificate of Enrolment from the concerned authority.
Is professional tax applicable in Goa?
The professional tax rate in Goa
Rs. 2500 per annum. Can be paid in either way.
What is the penalty for professional tax in Gujarat?
As per the Profession Tax Act, if you fail to make payment within the specified time, you will be subject to a daily late payment fee and annual interest of 18% on the total amount owed.
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.
How much is professional tax in Chennai?
| Average Monthly Income | Payable Tax Amount |
|---|---|
| From Rs 21,000 to Rs 30,000 | Rs 130 |
| From Rs 30,001 to Rs 45,000 | Rs 315 |
| From Rs 45,001 to Rs 60,000 | Rs 690 |
| From Rs 60,001 to Rs 75,000 | Rs 1025 |
