Professional Tax in India:
There is a special kind of tax levied on salaried individuals and people engaged in profession, trade and calling in India and it is called Professional tax. The tax has to be paid to the state government and the professional tax amount to be paid depends on the income of the individual in accordance with the income tax slab rates of that state. Professional tax has been in practice for a long time. The maximum amount of professional tax that can be levied is Rs.2,500 per year.The total amount of professional tax paid during the year qualifies for deduction under the Income tax act, 1961.
|
Monthly Income of the Tax Payer |
Professional Tax Amount Payable |
|
For salary up to Rs.5,999 |
Nil |
|
For salary between Rs.6,000 to Rs.8,999 |
Rs.80 |
|
For salary between Rs.9,000 to Rs.11,999 |
Rs.150 |
|
For salary of Rs.12,000 and above |
Rs.200 |