Professional Tax

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 My Biz Development team has expertise in providing complete tax consulting and compliance support services to individuals and businesses in India. Our professional tax consultants are just a phone call away.

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In the ever changing tax landscape, it can be daunting task to file your tax returns. My Biz Consultants have more than a decade of experience in providing tax consultation and other legal solutions to businesses. Give us a call today for all your tax related queries and questions.

What is Professional Tax?

Income earned by individuals from profession or employment under professional tax in India.  It is levied on professions such as lawyer, teacher, doctor, chartered accountant, etc. In such cases, professionals are required to file return and pay tax for income earned from their profession.  Such tax is also levied on salaried individuals and wage earners. For salaried employees, the employer deducts the professional tax from their salary or wages and is obligated to remit it to the state government.

What is professional tax rate in India?

The professional tax rate in India varies across different states. However, all states must follow the slab based on the income to levy professional tax.

What are the exemptions for professional tax in India?

As per the income tax act, there are certain exemptions provide to the individuals paying professional tax.

There are exemptions provided for certain individuals to pay Professional Tax under the Professional Tax Rules. If you fall into any of the following category, you will be exempted from tax

  • Parents of children with permanent or mental disabilities.
  • Members of the armed forces as defined in the Army Act of 1950, the Air Force Act of 1950, and the Navy Act of 1957. It also includes individuals in auxiliary forces or reservists serving within the state.
  • Badli workers in the textile industry
  • Charitable hospitals in places that comes below the Taluk level
  • An individual with any kind of permanent physical disability (including blindness).
  • Parents or guardians of individuals suffering from mental disability.
  • Women solely employed as agents under the Mahila Pradhan Kshetriya Bachat Yojana or as Directors of Small Savings.
  • Individuals running an educational institute in respect of their branches teaching classes’ up to 12th standard or pre-university.
  • Women who are solely engaged as agents under the Government’s Mahila Pradhan Kshetriya Bachat Yojana
  • Individuals, above 65 years of age.

Who is Responsible for Deducting Professional Tax?

As per the Section 276(2) of the Indian Constitution, employers must deduct professional tax from employee salaries each month and pay it to the government. Employers should furnish the return to the tax department in the prescribed form within the specified time along with proof of tax payment.

Professional Tax rate in India

The maximum amount of Professional Tax that can be imposed by any state in India is INR 2500/-. Total amount of Professional Tax paid during the year is allowed as deduction under the Income Tax Act. The Professional Tax is a source of revenue for the state governments which helps in implementing schemes for the welfare and development of the region. Professional Tax is deducted by the employers from the salary of the salaried employees, and is deposited with the state government. Other individuals pay it directly to the government or through the local bodies appointed to do so.

Hire tax consultants from My Biz Development and get comprehensive assistance for fling your tax returns. Our team will do the following tasks to make it quick and hassle free for you to file professional tax return in India

  • Gather and verify the accuracy of all tax-related documents
  • Prepare federal and state income tax returns
  • Identify missing information and liaise with clients to resolve it
  • Review and audit tax forms to ensure accuracy
  • Ensure tax reports are in compliance with IRS regulations
  • File sales tax returns with state authorities regularly
  • Calculate and file payroll tax returns
  • Prepare year-end forms and submit them to the relevant authorities

At My Biz Development, our team ensures the timely and accurate filing of your tax returns for professional taxes in India. Our online services ensures you get easy tax payment and filing support, while ensuring compliance with laws. Call us and get tax consultation today.

Our Charges For Professional Tax Starts from Rs 6,450/-

FAQs

Yes GST is charged on most of the professional services in India. The standard GST rate for professional services is 18%. However, certain professionals are exempted from the tax paid for professional services such as medical services and education services are not required to pay GST.

If there is non-payment of professional tax, it can lead to penalties, fines and legal actions taken by relevant authorities. It can also lead to the cancellation of business license in some cases.

Professional tax is applicable in 21 states and 1 union Territory in India

The rates vary from state to state. For instance, currently in 2024, professional tax rates in Maharashtra vary from ₹175 to ₹2,500 per month based on salary. For Karnataka, it varies from ₹150 to ₹2,500 per month. One must confirm rates from State Government websites and Official Gazettes. Professional tax consultants can also help you to know the specific tax rates in your state.