Adhimukti Associates

Professional Return

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 SalaryAmount Payable as Professional Tax
Rs. 1000 to Rs.10000Rs. 175 per month
Above Rs. 10000Rs. 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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