Professional Tax For The Financial Year 2016-17

Professional tax is a tax levied by the various State

Governments of India on salaried individuals, working in
government or non-government entities, or in practice of any
profession, including Chartered Accountants, Doctors, Lawyers
etc or carry out some form of business. This form of tax is in
practice for a long time and States were conferred the power of
leveling the Tax under Clause (2) of Article 276. The rate at
which Professional tax is charged is based on the Income Slabs
set by the respective State Governments. However the
maximum Professional Tax that can be levied by any State till
date is Rs 2500/-. The total amount of professional tax paid
during the year is allowed as Deduction under the Income Tax
Act. The professional tax is a source of revenue for the State
Governments which helps the different in implementing
schemes for the welfare and development of the region.
Professional Tax is deducted by the employers from the salary
of the salaried employees and same is deposited with the State
Government. For other individuals, they have to directly pay it
to the Government or through the Local Bodies appointed to do
so.
Click on the Link below to know about some of the major
announcements made in the recent Budget Speech.
Tax Deduction Available Under Various Sections For Financial
Year 2016-17
Budget 2016-17: Highlights
Income Tax Rates and Tax Slabs For The Financial Year 2016-17
Impact Of Income Tax For The Financial Year 2016-17
For the Financial Year 2016-17, few states have made some
alteration which has been updated in this post. Any further
changes or revision, I come to know will be updated at the
earliest.

Lets look at the Professional Tax Slabs of the States which levy
the Professional Tax:-

Gujarat
Monthly Salary

Professional Tax Levied (P.M)

Up to Rs 5,999/-

Nil

Rs 6,000-Rs 8,999/-

Rs 80

Rs 9,000-Rs 11,999/-

Rs 150

Rs 12,000/- or Above

Rs 200

Maharashtra
Monthly Salary

Professional Tax Levied (P.M)

Up to Rs 7,500/-

Nil

Rs 7,501-Rs 10,000/-

Rs 175

Above Rs 10,001/-

*Rs 200 & Rs 300

*Maharashtra Government levies Professional Tax @ Rs 200 for

11 months and Rs 300 for the last month.
**Women who earn Salary up to Rs 10,000/- per month are
exempted from paying Professional Tax.
States and Union Territories where Professional Tax is
Not Applicable
Arunachal Pradesh

Andaman & Nicobar

Chandigarh
Dadra & Nagar Havelli
Daman & Diu
Delhi
Haryana
Himachal Pradesh
Jammu & Kashmir
Lakshadweep
Nagaland
Punjab
Rajasthan
Uttaranchal
Uttar Pradesh
Exemption from Paying Professional Tax (Subject to exemption
approved by the respective State)
1.
2.

Any person suffering from a permanent physical disability (including blindness)

Parents or guardian of any person who is suffering from mental retardation.

3. Persons who have completed the age of 65 years.(60 years in case of Karnataka)
4. Parents or guardians of a child suffering from a physical disability as specified in
clause (C) w.e.f 1.10.1996.

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Maharashtra Professional Tax Slab Rate

Maharashtra Professional Tax:
Like other states in India, the Government of Maharashtra also levies professional charges on
the income earn from various sources. Professionals working in government or nongovernment sectors, doctors, lawyers, chartered accountant- they all are responsible for
paying professional tax in Maharashtra and get a certificate of Certificate of Enrolment from
the concerned authority. Professional Tax in Maharashtra is handled by the Maharashtra State
Tax on Professions, Trades, Calling and Employment Act, 1975 which came into effect on 1st
April 1975. As per this act, professional tax is applicable for both individuals and companies.

Who pays professional tax in Maharashtra?

Professional tax are applicable for both salaried and self-employed professionals who earn
income working in government and private organizations and any other modes of
employment. Professional tax is subject to a minimum limit of income and charged as per
applicable slab rates of a state. Senior citizens above the age of 65 and handicapped persons
with more than 40 % disability and parent of a physically disabled and mentally retarded
children are exempted from paying professional tax in Maharashtra.

How to pay Professional Tax in Maharashtra:

In case of salaried professionals, professional tax is deducted by employers. They deduct it

and deposit the total amount with the municipal corporation. Non-salaried individuals can
pay it directly to the government via local officials appointed to collect tax. Also, they can
pay it online.

Professional Tax Slab Rates in Maharashtra 2014- 2015:

The states in India revise their professional tax rates for every financial year. Likewise, the
Government of Maharashtra of also revised its professional tax slab rates for the financial
year 2014-15. Mentioned below are the professional tax slab rates applicable for salaried and
self-employed professionals in Maharashtra.
Monthly Gross Salary Amount Payable as Professional Tax
Up to Rs.7500

Nil

Rs. 1000 to
Rs.10000

Rs. 175 per month

Rs. 2,500 p.a. The amount is can be paid in the
following manner:

Above Rs. 10000

Rs. 200 per month except for the month of

February.

Rs. 300 for the month of February.

Maharashtra Professional Tax Slab Rate 2015-16:

The Government of Maharashtra of also revised its professional tax slab rates for the
financial year 2015-16. It offers special privileges for women professional tax payers. A
woman whose monthly income is Rs.1000 of less than Rs.1000, she is exempted from paying
professional tax in Maharashtra. The professional tax deducted by the Maharashtra
Government is subject to the minimum income level of an individual. An individual earning
less than 7,500 or up to 7,500 does not have to pay any professional tax in Maharashtra.
Listed below are revised slab rates of professional tax in Maharashtra:
Monthly Gross Salary Amount Payable as Professional Tax
Up to Rs. 7,500

Nil

Rs 7,501-Rs 10,000 Rs. 175

2,500 p.a. The payment is accepted in the following
method:
Above Rs. 10,00

Rs. 200 per month except for the month of

February.

Rs. 300 for the month of February.

Maharashtra Professional Tax Penalty:

The Maharashtra Government charges penalty under the following circumstances:

Delay in enrolling for professional tax

Providing inaccurate information while enrolling for professional tax.

Failure to pay professional tax within due date.

Professional Tax in India:

Professional Tax is a kind of tax charged by various State Governments. The tax is charged
on the income earned by individuals who are engaged in various professions. Professional tax
came into existence in 1949 when the government of India entrusted the responsibility of
collecting professional tax to the states as per the Article 276, Clause 2 of the Indian
Constitution. Professional tax is almost similar with Income tax. The only difference is
professional tax is charged by the State Government while Income Tax is charged by the
Central Government.
Initially, at the time of introduction, Rs. 250 was determined as professional tax. Later on the
amount was increased to Rs. 2500 in 1998. Over the past few years, the state government has
been trying to raise the amount of professional tax form Rs. 2500 to Rs.7000. However, so far
the government of India has not raised the amount and maximum amount of it remains the
same.