Profession Tax & Slab Rates in India

Kenneth Saldanha , Last updated: 04 October 2016
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A profession tax is levied by individual state governments on persons who earn their living through employment, trade or professional work. The clause (2) of Article 276 of the Constitution of India gives permission to the states to levy this tax on persons practicing/earning a salary in their territory.

The amount of profession tax to be paid varies from one state to another and also depends on slab rates fixed by state governments. The maximum limit for Profession Tax is Rs. 2,500 per annum.

Since profession tax is levied by the state government, any amount paid as profession tax for that financial year is allowed for deductions on the income tax to be paid. The deductions are applicable as under Section 16 of the Income Tax Act.

While a person earning an income will pay Profession Tax through their employers (deducted by the employers from the salary), the others need to pay it in person.

Profession Tax can be paid through registrations to local authorities, which is mostly state governments and in some cases, the local panchayats and other authorized bodies.

Profession Tax in various states of India

Andhra Pradesh
In Andhra Pradesh, the profession tax is levied upon by the rules and regulations set through the Andhra Pradesh Tax on Profession, Trades, Callings and Employment Act, 1987. The profession tax slab rates in the State are as follows:

Earnings Per Month	Tax levied in rupees per month (Rs. Per Month)
Up to 15,000	Nil
Rs. 15, 001 to 20,000	150
Rs. 20,000 and above	200

Bihar
In Bihar, the slab rates for profession tax on individual tax payers are as given in the table:

Salary Earned	Profession Tax to be paid
Up to 25.000	Nil
25,001 to 41, 666	83.33
41,667 – 83,333	166.67
83,334 and above	208.33

Gujarat
The profession tax laws in the State of Gujarat are governed by the Gujarat panchayats, municipalities, municipal corporations and state tax on the Professions, Traders, Callings and Employment Act, 1976. The slab rates, as fixed by the state, are as follows

Salary Earned	Profession Tax to be paid
Up to 5,999	NIL
6000 - 8999	80
9000 - 11,999	150
12, 000 and above	200

Additional information about profession tax in Gujarat and the forms to be filled for registration of Profession Tax in the state.

Karnataka
Profession Tax slabs in Karnataka and the tax itself is levied with respect to the rules and regulations put forth through the Karnataka tax on Profession, Callings and Employment Act, 1976. The slab rates of the State are as follows:

Salary Earned	Profession Tax to be paid
Up to 15,000	Nil
15,001 and above	200 per month

Kerala
The profession tax slabs in Kerala are as follows:

Salary Earned	Profession Tax to be paid
Up to 1,999	Nil
2,000 - 2,999	20
3,000 - 4,999	30
5,000 - 7499	50
7,500 - 9,999	75
10,000 - 12, 499	100
12,500 - 16,666	125
16,667 - 20,833	166
20, 834 and above	208

Madhya Pradesh
The Madhya Pradesh Vritti Kar Adhiniyam, 1995 has put forth rules and regulations to levy profession tax in the state. The state has also published a notice in the MP Gazette, Notification No. 174 dated 31/03/2012, through which the slab rates have been revised and valid with effect from 1/04/ 2012.

The slab rates in the state are as follows

Salary Earned	Profession Tax to be paid per month
Up to 12,500	Nil
12,500 to 14,999	125
15,000 and above	208 from April to Feb and 212 if paid in March

Maharashtra
Profession tax in Maharashtra is levied with reference to the Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975 and came into effect from 1/04/1975. The slab rates in the state are as follows:

Salary Earned	Profession Tax to be paid
Up to 7500	Nil
7501 and 10,000	175
10,001 and above	200 per month (300 for February)

The Maharashtra government has a composition scheme for tax payers through which an advance of 10,000 as a lump sum payment can be paid for 5 years of tax.

Tamil Nadu
The Town Panchayats, Municipalities and Municipal corporations Rules, 1988, put forth by the Tamil Nadu government governs the collection of Profession Tax in the state.

The slab rates for profession tax in Tamil Nadu are as follows:

Salary Earned	Profession Tax to be paid
Less than 3,500	Nil
3501 - 5,000	16.66
5,001 - 9,000	40
9001 - 12,500	126.67
12,5001 and above	182.50

West Bengal
The West Bengal State Tax on Professions, Trades, Callings and Employment Act, 1979, authorizes the collection of profession tax in India. The slab rates, with effect from 1/04/2013, is as follows:

Salary Earned	Profession Tax to be paid
Up to 8500	Nil
8501 – 10,000	90
10,001 – 15.000	110
15,001 – 25,000	130
25001 – Rs.40,000	150
40,001 and above	200