Profession tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. … It is a source of revenue for the government.
The maximum amount payable per year is INR 2,500 and in line with tax payer’s salary, there are predetermined slabs. … It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.
| Monthly Gross Salary | Amount Payable as Professional Tax |
| Rs. 1000 to Rs.10000 | Rs. 175 per month |
| Above Rs. 10000 | Rs. 2,500 p.a. The amount is can be paid in the following manner: Rs. 200 per month except for the month of February. Rs. 300 for the month of February. |
The maximum amount of professional tax that can be levied by a state is Rs 2,500. It is usually deducted by the employer and deposited with the state government. In your income tax return, professional tax is allowed as a deduction from your salary income.
When this tax was first introduced in India, the maximum limit on the tax to be collected was Rs. 250. … Any amount paid as Professional Tax to the State Govt. is allowed as a deduction under Section 16 of the Income Tax Act and Income Taxon the Balance Amount is levied as per the Income Tax Slab Rates in force.
Get a free consultation for Professional Tax (PT) Registration with Return Filling and Business Setup in India by Scheduling an appointment with an Adhimukti Associates Advisor.
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