Article 276 of Constitution of India gives power to States to levy tax on profession,trades,callings, and employments . No states is allowed to levy Professional tax of more than Rs.2500/-per annum .The tax rate differs from state to state. Professional tax is not applicable on Senior citizens, disabled persons, members of the forces, and parents or guardians of mentally or permanently disabled children. Only 21 states and union territory in India levy Professional Tax in India.

Employers or business owners who employ others are responsible to deduct professional tax from their employees salary and deposit to concerned state department on prescribed time.

Every employer is must get registration within 30 days of hiring employees in his/her company. If any company have employees in different states, then company needs to take separate registration in every applicable state.
1. In case of failure of registration
2. In case of failure of deposition of Professional tax on time
3. In case of failure of submission of Professional tax return

List of States where Professional tax is applicable-

Andhra Pradesh Assam Bihar Gujarat Jharkhand Karnataka Kerala Madhya Pradesh
Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Puducherry Punjab
Sikkim Tamil Nadu Telangana Tripura West Bengal

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