Article 276 of the Constitution of India: Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments.

What is Professional Tax:

Profession tax is a tax leviable on Professions, Trades, Callings and Employments. The GST Department is the nodal agency which collects the Profession Tax dues from business entities in the State. Every professional, trader, calling and employment except Agriculturalist, Persons engaged in performing religious duties, Skilled persons that is to say Gold Smith, Black Smith, Pot Maker, Basket Maker, Washerman, Barber, Cobbler, Tailors, Carpenters, Masons, Plumbers, Book Binder, Toddy Tappers and Electricians, Physically Handicapped persons with 40% or more disability of any kind adn Dry Cleaners has to apply for registration under Professional Tax Act.

Different states have different rates and methods of collection. In India, profession tax is imposed every month. However, not all states impose this tax. The states which impose professional tax are Andhra Prdesh, Assam, Bihar, Gujarat, Jharkhand, Karnataka, Kerala, Madya Pradesh, Maharastra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Pandicherry, Punjab, Sikkim, Tamil Nadu, Telangana, Tripura and West Bengal. It is a direct tax levied by respective state government. Both employee and employer have to pay this tax. This tax is deducted while paying salaries to the employees, where as for business entities, it has to be paid on yearly basis (ie. on or before 30th June).

Profession tax is levied and collected by the GST Department of State Governments, in some states by particular Municipal Corporations and majority of the Indian states are collecting this tax. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deducted by the employer from their employee's salary every month and remitted to state exchequer and in some states sent to the Municipal Corporation. It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

An employer ie. corporates, partnership firms, sole proprietorship etc., also being a person carrying on trade/profession is required to register under Professional Tax. Each state has it's own professional tax law.

An employer (corporates, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to the monetary threshold if any provided by respective State’s legislation.

For employees, an employer is the responsible to deduct and pay professional tax to the State Government subject to monetary threshold if any provided by respective State’s legislation. Additionally, employer (corporates, partnership firms, sole proprietorship etc) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to monetary threshold if any provided by respective State’s legislation. In such case, employer needs to register and obtain both professional tax registration certificate to be able to pay professional tax on his trade/profession and professional tax enrolment certificate to be able to deduct the tax from his employees and pay.

Each state has diferrent tax rates. Below are the tax rates for each state in India.

Professional Tax rates in Andhra Pradesh & Telangana:

Monthly Salary	Professional Tax Amount
Up to Rs.15000	Nil
Rs.15001 to Rs.20000	Rs.150 per month
Rs.20000 above	Rs.200 per month

Professional Tax rates in Assam:

Monthly Salary	Professional Tax Amount
Up to Rs.10000	Nil
Rs.10001 to Rs.15000	Rs.150 per month
Rs.15001 to Rs.25000	Rs.180 per month
Rs.25000 above	Rs.208 per month

Professional Tax rates in Bihar:

Monthly Salary	Professional Tax Amount
Up to Rs.25000	Nil
Rs.25001 to Rs.41666	Rs.83 per month
Rs.41667 to Rs.83333	Rs.166.67 per month
Rs.83333 above	Rs.208.33 per month

Professional Tax rates in Delhi:

Professional Tax rates in Goa:

Monthly Salary	Professional Tax Amount
Up to Rs.15000	Nil
Rs.15001 to Rs.25000	Rs.150 per month
Rs.25000 above	Rs.200 per month

Professional Tax rates in Gujarat:

Monthly Salary	Professional Tax Amount
Less than Rs.6000	Nil
Rs.6000 to Rs.8999	Rs.80 per month
Rs.9000 to Rs.11999	Rs.150 per month
Rs.12000 and above	Rs.200 per month

Professional Tax rates in Jharkhand:

Monthly Salary	Professional Tax Amount
Up to Rs.25000	Nil
Rs.25000 to Rs.41666	Rs.100 per month
Rs.41667 to Rs.66666	Rs.150 per month
Rs.66666 to Rs.83333	Rs.175 per month
Rs.83333 above	Rs.208 per month

Professional Tax rates in Karnataka:

Monthly Salary	Professional Tax Amount
Up to Rs.15000	Nil
Rs.15000 above	Rs.200 per month

Professional Tax rates in Kerala:

Monthly Salary	Professional Tax Amount
Up to Rs.11999	Nil
Rs.12000 to Rs.17999	Rs.120 per half year
Rs.18000 to Rs.29999	Rs.180 per half year
Rs.30000 to Rs.44999	Rs.300 per half year
Rs.45000 to Rs.59999	Rs.450 per half year
Rs.60000 to Rs.74999	Rs.600 per half year
Rs.75000 to Rs.99999	Rs.750 per half year
Rs.100000 to Rs.124999	Rs.1000 per half year
Rs.125000 and above	Rs.1250 per half year

Professional Tax rates in Madhya Pradesh:

Monthly Salary	Professional Tax Amount
Less than Rs.18750	Nil
Rs.18750 to Rs.25000	Rs.125 per month
Rs.25000 to Rs.33333	Rs.167 per month
Rs.33333 and above	Rs.212 per month

Professional Tax rates in Maharashtra:

Monthly Salary	Professional Tax Amount
Less than Rs.7500	Nil
Rs.7501 to Rs.10000	Rs.175 per month
Rs.10000 above	Rs.300 for Feb month and rest is Rs.200
Woman salary upto Rs.10000	Nil

Professional Tax rates in Manipur:

Monthly Salary	Professional Tax Amount
Upto Rs.4250	Nil
Rs.4251 to Rs.6250	Rs.100 per month
Rs.6251 to Rs.8333	Rs.167 per month
Rs.8334 to Rs.10416	Rs.200 per month
Rs.10417 & above	Rs.212 per month

Professional Tax rates in Meghalaya:

Monthly Salary	Professional Tax Amount
Upto Rs.4166	Nil
Rs.4167 to Rs.6250	Rs.16.50
Rs.6251 to Rs.8333	Rs.25 per month
Rs.8334 to Rs.12500	Rs.41.50 per month
Rs.12501 to Rs.16666	Rs.62.50 per month
Rs.16667 to Rs.20833	Rs.83.33 per month
Rs.20834 to Rs.25000	Rs.104.16 per month
Rs.25001 to Rs.29166	Rs.125 per month
Rs.29167 to Rs.33333	Rs.150 per month
Rs.33334 to Rs.37500	Rs.175 per month
Rs.37501 to Rs.41666	Rs.200 per month
Rs.41667 above	Rs.208 per month

Professional Tax rates in Odisha:

Monthly Salary	Professional Tax Amount
Up to Rs.13304	Nil
Rs.13305 to Rs.25000	Rs.125 per month
Rs.25000 above	Rs.300 for Feb month and for rest Rs.200

Professional Tax rates in Punjab:

Monthly Salary	Professional Tax Amount
Yearly salary income is more than Rs.2,50,000	Rs.200 per month
Yearly business income is more than Rs.2,50,000	Rs.200 per month

Professional Tax rates in Puducherry:

Monthly Salary	Professional Tax Amount
Half yearly salary up to Rs.99999	Nil
Half yearly salary from Rs.100000 to Rs.200000	Rs.250 per half year
Half yearly salary from Rs.200001 to Rs.300000	Rs.500 per half year
Half yearly salary from Rs.300001 to Rs.400000	Rs.750 per half year
Half yearly salary from Rs.400001 to Rs.500000	Rs.1000 per half year
Half yearly salary from Rs.500000 above	Rs.1250 per half year

Professional Tax rates in Sikkim:

Monthly Salary	Professional Tax Amount
Up to Rs.20000	Nil
Rs.20001 to Rs.30000	Rs.125 per month
Rs.30001 to Rs.40000	Rs.150 per month
Rs.40000 above	Rs.200 per month

Professional Tax rates in Tamil Nadu:

Monthly Salary	Professional Tax Amount
Up to Rs.21000	Nil
Rs.21001 to Rs.30000	Rs.135 per half year
Rs.30001 to Rs.45000	Rs.315 per half year
Rs.45001 to Rs.60000	Rs.690 per half year
Rs.60001 to Rs.75000	Rs.1025 per half year
Rs.75000 above	Rs.1250 per half year

Professional Tax rates in Tripura:

Monthly Salary	Professional Tax Amount
Up to Rs.7500	Nil
Rs.7500 to Rs.15000	Rs.150 per month
Rs.15000 above	Rs.208 per month

Professional Tax rates in West Bengal:

Monthly Salary	Professional Tax Amount
Up to Rs.10000	Nil
Rs.10001 to Rs.15000	Rs.110 per month
Rs.15001 to Rs.25000	Rs.130 per month
Rs.25001 to Rs.40000	Rs.150 per month
Rs.40000 above	Rs.200 per month

• A

  For Proprietorship Business

  1. Proprietor PAN, Aadhaar Card or Voter ID or Passport or Driver's License
  2. Latest passport size photograph
  3. Office Name Board both in English and Regional Language
  4. List of Employees and their designations if any
  5. Proprietor Mobile Number
  6. Proprietor Email id
  7. Registered Office Address Proof: Latest Power Bill
  8. No-objection letter cum Affidavit from the Landlord if it is owned.
  9. Rental Agreement from the landlord if the premises are rented.
• B

  For Other Businesses

  1. Directors or Partners PAN, Aadhaar Card or Voter ID or Passport or Driver's License
  2. Directors or Partners latest passport size photographs
  3. Office Name Board both in English and Regional Language
  4. List of Employees and their designations if any
  5. Directors/Partners Mobile Number
  6. Directors/Partners Email id
  7. Partnership Deed in case of Firm
  8. Certificate of Registration of Business
  9. Partnership Deed or MOA, AOA or LLP Agreement
  10. firm/LLP/Company PAN
  11. Board Resolution
  12. Registered Office Address Proof: Latest Power Bill
  13. No-objection letter cum Affidavit from the Landlord if it is owned.
  14. Rental Agreement from the landlord if the premises are rented.

You can register under professional tax in the following three steps.

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