Professional tax is a tax that a state government levies on any individual who earns income through any medium. Unlike the name suggests, it is not just for professionals but for all individuals. If you’re looking for a hassle-free way to complete your professional tax registration, You need to visit Tax HelpDesk, their exceptional income tax consultation makes all your GST and income tax-related services a much simpler and easier process. Keep reading this blog to learn more.
Who is subject to Professional Tax Registration?
- Businesses, including freelancers
- Businesses, including freelancers, professionals such as CAs, CSs, and doctors
- employees
It is applicable if a person starts his or her profession or business within 30 days after starting the profession. If the company has a presence in multiple locations, it must register for each one.
Exemption from Professional Tax:-
The following individuals are free from paying this tax:
- Parents whose children have a physical or mental disability.
- Members of the armed forces as specified under the Air Force Act of 1950, the Army Act of 1950, and the Navy Act of 1957. Members of the auxiliary troops and those serving in the state are also included.
- Textile industry employees (Badli workers).
- Individuals suffering from a lifelong physical disability (including blindness).
- Women working as agents for the Director of Small Savings, also known as the Mahila Pradhan Kshetriya Bachat Yojana.
- Individuals above the age of 65 are also eligible.
Per fiscal year, a maximum of Rs. 2,500 can be charged to any individual.
Professional Income Tax Is Deductible According to Section 16 (iii) of the Income Tax Act
The professional tax paid by an employee is allowable as a deduction from his/her gross pay income under Section 16 (iii) of the Income Tax Act of 1961.
Professional Tax Rates of Key States of India
Because this tax is imposed at the state level, the rate varies from one state to the next. While some states tax it as a percentage, others charge it as a fixed amount based on income levels. The following are the rates in India’s main states:
Andhra Pradesh
| Income per Month | Tax Rate/Tax Amount (p.m.) |
| Less than ₹15,000 | Nil |
| ₹15,000 to less than ₹20,000 | ₹150 |
| ₹20,000 and above | ₹200 |
Gujarat
| Income per Month | Tax Rate/Tax Amount (p.m.) |
| Up to ₹5999 | Nil |
| ₹6,000 to ₹8,999 | ₹80 |
| ₹9,000 and ₹11,999 | ₹150 |
| ₹12,000 and above | ₹200 |
Karnataka
| Income per Month | Tax Rate/Tax Amount (p.m.) |
| up to ₹15,000 | Nil |
| ₹15,001 and above | ₹200 |
Maharashtra
| Income per Month | Tax Rate/Tax Amount (p.m.) |
| Up to ₹7,500 | Nil(for male) |
| Up to ₹10,000 | Nil(for female) |
| ₹7,500 to ₹10,000 | ₹175(for male) |
| ₹10,000 and above | ₹200 for 11 months + ₹300 for 12th month |
Telangana
| Income per Month | Tax Rate/Tax Amount (p.m.) |
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 |
| ₹20,001 onwards | ₹200 |
| Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.) | Nil |
| Over 5 years (For professionals such as legal practitioners, CA, architects, etc.) | ₹ 2,500 (per annum) |
West Bengal
| Income per Month | Tax Rate/Tax Amount (p.m.) in Rs |
| Up to ₹10,000 | Nil |
| 10,001 to ₹ 15,000 | 110 |
| 15,001 to ₹ 25,000 | 130 |
| 25,001 to ₹ 40,000 | 150 |
| 40,001 and above | 200 |
Final Thoughts
If you want to complete your professional tax registration in a hassle-free manner, you should visit Tax HelpDesk; their amazing income tax consultation makes all of your GST and income tax-related services a much simpler and smoother process.
