{"id":19197,"date":"2020-11-09T15:16:47","date_gmt":"2020-11-09T09:46:47","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19197"},"modified":"2020-11-09T17:19:42","modified_gmt":"2020-11-09T11:49:42","slug":"is-professional-tax-salary-deduction-a-special-tax","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/is-professional-tax-salary-deduction-a-special-tax\/","title":{"rendered":"Is Professional Tax Salary Deduction a Special Tax? Let\u2019s Understand in Depth!"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Professional tax is a type of special tax\nlevied by respective state governments on an individual who makes a living by\nany profession or occupation. Additionally, one must not take Professional tax\nfor its word meaning that only professionals need to pay this tax.<\/p>\n\n\n\n<p>Instead, it includes the tax that someone has to pay because they are employed in any profession. There are rules for professional tax salary deduction that varies from one state to another. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/is-professional-tax-salary-deduction-a-special-tax\/#Why_Professional_Tax_Salary_Deduction_does_vary_in_Different_States\" >Why Professional Tax Salary Deduction does vary in\nDifferent States?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/is-professional-tax-salary-deduction-a-special-tax\/#Which_States_Oblige_Professional_Tax_and_related_the_Tax_Slabs\" >Which States Oblige Professional Tax and related the Tax\nSlabs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/is-professional-tax-salary-deduction-a-special-tax\/#Who_Collects_Professional_Tax_Salary_Deduction\" >Who Collects Professional Tax Salary Deduction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/is-professional-tax-salary-deduction-a-special-tax\/#Consequences_of_Violating_Professional_Tax_Regulation\" >Consequences of Violating Professional Tax Regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/is-professional-tax-salary-deduction-a-special-tax\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Professional_Tax_Salary_Deduction_does_vary_in_Different_States\"><\/span>Why Professional Tax Salary Deduction does vary in\nDifferent States? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Professional Tax comes under a jurisdiction\nof state government, and not under a control of a Central government. Hence,\nthere is no single law which explains how one should calculate this tax for the\nentire country. Every state government has a body which frames laws regarding a\ncollection of Professional tax. <\/p>\n\n\n\n<p>The centre has specified what are the maximum amount that has to be collected in the given year. The rest of the rules related to a collection of professional tax are made by a respective state government. Therefore, each state has its own professional tax slab rates, so the tax calculated are based on these slabs. There are various states and Union Territories in India that does not charge Professional tax.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Instalment in Payments<\/h3>\n\n\n\n<p>Additionally, an entire tax for the year\nhas been split into 12 equal instalments that an individual requires to pay\nevery month. However, in various cases, the month of February required the\npayment of the higher tax than the rest of months. There are also situations\nwhere incomes from other sources become liable under different taxes. <\/p>\n\n\n\n<p>For example, in some states, individual that runs a business related to medicine requires paying Rs 50 P.A. for every pharmacy they own. However, in such special taxes and fees will usually be subjected when a tax calculated on a yearly basis.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who are Professionals that do Not get Professional Tax\nDeducted From Salary?<\/h3>\n\n\n\n<ul><li>Army, navy air force and other auxiliary force or reserve members<\/li><li>People working for defence-related factories like Ordnance Factory<\/li><li>Badli workers from a textile industry <\/li><li>Employees having permanent physical disabilities such as blindness<\/li><li>Parents or guardians of people with physical or mental disabilities<\/li><li>Women under&nbsp;<strong>MPKBY scheme<\/strong><sup><a href=\"http:\/\/www.nsiindia.gov.in\/InternalPage.aspx?Id_Pk=130\"><strong>[1]<\/strong><\/a><\/sup> of small savings<\/li><li>People above age of 65years. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_States_Oblige_Professional_Tax_and_related_the_Tax_Slabs\"><\/span><strong>Which States Oblige Professional Tax and related the Tax\nSlabs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<td width=\"145\">\n<p><strong>State<\/strong><\/p>\n<\/td>\n<td width=\"256\">\n<p><strong>Tax Rate\/Tax Amount (per month)<\/strong><\/p>\n<\/td>\n<td width=\"317\">\n<p><strong>Income per Month<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td rowspan=\"3\" width=\"145\">\n<p>Andhra Pradesh<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Less than Rs. 15,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 150<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs. 15,000 to less than Rs. 20,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 200<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs. 20,000 and above<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\" width=\"145\">\n<p>Gujarat<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to Rs. 5999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 80<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs. 6000 to Rs. 8999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 150<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs. 9000 to Rs. 11999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 200<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs 12000 and above<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\" width=\"145\">\n<p>Karnataka<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to Rs. 15,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 200<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs. 15,001 onwards<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"9\" width=\"145\">\n<p>Kerala (Half yearly income tax slabs &amp; half yearly tax payment)<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to Rs.11,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.120<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.12,000 to Rs.17,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.180<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.18,000 to Rs. 29,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.300<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.30,000 to Rs. 44,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.450<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.45,000 to Rs. 59,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.600<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.60,000 to Rs. 74,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.750<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.75,000 to Rs. 99,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.1000<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.1,00,000 to Rs. 1,24,999<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.1250<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.1,25,000 onwards<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\" width=\"145\">\n<p>Maharashtra<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil (for male)<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to Rs. 7,500<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Nil (for female)<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to Rs. 10,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 175 (for male)<\/p>\n<\/td>\n<td width=\"317\">\n<p>From Rs. 7,500 to Rs. 10,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 200 for 11 months + Rs. 300 for 12th month<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs. 10,000 onwards<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"5\" width=\"145\">\n<p>Telangana<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to Rs. 15,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 150<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.15,001 to Rs.20,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs.200<\/p>\n<\/td>\n<td width=\"317\">\n<p>Rs.20,001 onwards<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to 5 years (For professionals such as CA, legal practitioners, architects, etc.)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 2,500 (per annum)<\/p>\n<\/td>\n<td width=\"317\">\n<p>Over 5 years (For professionals such as CA, legal practitioners, architects, etc.)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"5\" width=\"145\">\n<p>West Bengal<\/p>\n<\/td>\n<td width=\"256\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"317\">\n<p>Up to 10,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 110<\/p>\n<\/td>\n<td width=\"317\">\n<p>10,001 to 15,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 130<\/p>\n<\/td>\n<td width=\"317\">\n<p>15,001 to 25,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 150<\/p>\n<\/td>\n<td width=\"317\">\n<p>25,001 to 40,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"256\">\n<p>Rs. 200<\/p>\n<\/td>\n<td width=\"317\">\n<p>40,001 and above<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Collects_Professional_Tax_Salary_Deduction\"><\/span>Who Collects Professional Tax Salary Deduction?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Employers will collect the tax from their\nemployees, or deduct it from the monthly salaries and then pay it to\ngovernment. The employer may also collect all these deductions and then pay it\nup together to the State government. However, if in case they fail to do so,\neven after collecting deductions from their employees, they have to face\npenalties. Furthermore, they also have an option of letting the employees file\ntheir own Professional tax returns. However, once the sum is collected, the\nemployer has to make sure that they pay the required Professional tax.<\/p>\n\n\n\n<p>In case of a professional freelancer, then they can file their own Professional tax returns by filing a required form. After having <a href=\"https:\/\/corpbiz.io\/professional-tax-registration\"><strong>Professional tax registration<\/strong><\/a>, they will receive a registration number. In future, this registration number can be used to pay the outstanding professional tax. However, it is advisable for such individuals to meet with the tax professionals. Certain states provide rebates if a due amount is paid as the lump sum and tax professionals know about such rebates in clarity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_of_Violating_Professional_Tax_Regulation\"><\/span>Consequences of Violating Professional Tax Regulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While an actual amount of penalty or penal\ninterest will depend on the respective State&#8217;s legislation, a penalty can be\nlevied by all such states for not having professional tax registration becomes\nliable. Furthermore, there are also penalties for not making a payment within\nthe prescribed due date or failing to file the return within the prescribed due\ndate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All the employees working for firms and the\npeople have their own businesses also need to pay this tax. Each &amp; every\nindividual living within a particular state, and earning an income becomes\neligible to pay the professional tax. Since, State government levies this tax, its\ncomputation varies in different states. However, for several individuals, a\nprofessional tax is deducted from their salary itself. <\/p>\n\n\n\n<p>The <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> experts helps the customers in matters related to paying of taxes and filing the income tax returns as well. We professional CAs and lawyers to solve your problem and we are happy to serve you. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/guide-on-professional-tax-registration-process\/\">\nGuide on Professional Tax Registration Process\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional tax is a type of special tax levied by respective state governments on an individual who makes a living by any profession or occupation. Additionally, one must not take Professional tax for its word meaning that only professionals need to pay this tax. Instead, it includes the tax that someone has to pay because [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":19224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[22],"tags":[1194],"acf":{"service_id":"303"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":4759,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19197"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19197"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19197\/revisions"}],"predecessor-version":[{"id":19225,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19197\/revisions\/19225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19224"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}