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.
Here a list of states with enactments passed for effective implementation of professional tax administration is provided for your ready reference.For more information on professional tax slab, please refer to our other blog on the topic.
Professional Tax in various States
States where professional tax is implemented
States where professional tax is not implemented
Andaman & Nicobar
Daman & Diu
Dadra & Nagar HaveliLakshadeep
Jammu and Kashmir