Professional tax
Abhishek Bhagotia
(Querist) 05 May 2012
This query is : Resolved
Please advice on the definition of professional tax ? It is a local tax levied on public servant by municipality. This will include all types of employees (clerks also) or there can be only a specific group. Can local body make such over reaching bye law? At present it includes even peons & clerks.
Sankaranarayanan
(Expert) 05 May 2012
In India, the professional tax is imposed at the state level. However, not all the states impose this tax, the following states impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.
Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is Rs.2,400/- and in line with your salary, there are predetermined slabs. It is paid by every member of staff employed in private companies. It is subtracted by the employer each month and sent to the Municipal Corporation. It is compulsory just like income tax. You will be eligible for income tax deduction for this payment.
Income Tax to be imposed in tamilnadu
Upto Rs.21000 Nil
From Rs.21001 to Rs.30000 Rs.75
From Rs.30001 to Rs.45000 Rs.188
From Rs.45001 to Rs.60000 Rs.390
From Rs.60001 to Rs.75000 Rs.585
More than Rs.75001 Rs.810
Abhishek Bhagotia
(Querist) 05 May 2012
Sir , in my case the state is Meghalaya . Thanks for the advice and especially for the part that it can be deducted in Income tax . Sir if u can kindly also advice , that under which section will it be deducted. This tax will not change the condition of service for all india service officers in this case ?
Abhishek Bhagotia
(Querist) 05 May 2012
Sankar sir, is it fair to be kept in 80 C ? It should be deducted from the net payable tax as I pay it directly . At which forum can it be taken up as it puts the condition of All India Service officer adverse to his/ her colleagues in other states where it is nt levied. Plz suggest.
Shonee Kapoor
(Expert) 06 May 2012
It would be deductible from the income only.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Anirudh
(Expert) 06 May 2012
Dear Abhishek,
Professional Tax is a tax levied by the Municipalities to augment their revenue. It is perfectly a valid levy. It is not akin to Income Tax. Income tax is a tax levied by the Central Government and 'income' of a person is getting charged to tax.
However, in the case of professional tax, the tax is levied on the persons who carry on any profession, employment, calling, etc. within the municipal limits.
It has nothing to do with 80C etc., which Section comes under Income Tax. As already indicated, professional tax has nothing to do with income tax.
The amount of professional tax paid is not allowable as a deduction under the Income Tax Act.
ashutosh mishra
(Expert) 06 May 2012
One can not dare go against such a crystal clear advice advanced by sir Anirudh.
Dear author!
please do not fall pray with misguided advises advanced to you by any of us except sir Anirudh.
