An overview on Professional Tax
Meaning
of professional tax:
Professional
Tax is the tax charged by the state governments in India.
Any one
earning an income from salary or any one practicing a profession such as chartered
accountant, lawyer, doctor etc. are required to pay this professional tax.
Different states have different rate and method of collection. Following states
impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Telangana,
Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya,
Orissa, Tripura and Madhya Pradesh etc. Business owners, working individuals,
merchants and people carrying out various occupations comes under the purview
of this tax.
Professional
tax is levied by particular Municipal Corporations. The maximum amount payable
per year is Rs.2,500/-
and in line with your
salary, there are predetermined slabs every state acts.
Applicability
of Professional Tax as per the Constitution of India:
Article 276 of the Constitution of India lays down that “there
shall be levied and collected a tax on professions, trades, callings and
employments, in accordance with the provisions of this Act.”
As the
different states have its own act for its applicability, levy, collection and
assessment hence it is imperative to provide you a list of states where
professional tax is applicable and acts passed in those states to ritualized
its collection.
