What are the Professional Tax Rate Slabs in the Different States of India?

Professional taxes are levied on earning individuals in specific states in India. The states which have levied professional tax are listed below along with their tax slabs. It is important to note that the total professional tax cannot be more than Rs.2,500 per year.

Andhra Pradesh

Divided into 2 groups, individuals earning between Rs.15,000 and Rs.20,000 per month must pay Rs.150 per month. For individuals earning above Rs.20,000, the monthly sum stands at Rs.200.

Assam

Learning what is a professional tax and how it is calculated in Assam, there are 3 basic slabs. These are Rs.150, Rs.180, and Rs.208 (Rs.212 for February).

Bihar

This tax must be paid on a yearly basis in Bihar. Divided into 3 segments, professionals must pay Rs.1,000 , Rs.2,000 or Rs.2,500; depending on their income.   

Chhattisgarh

In the case of Chhattisgarh, professionals must pay Rs.150, Rs.180, Rs.190, or Rs.200 per month as professional tax.

Gujarat

The professional tax rate in Gujarat is split into 4 slabs based on income groups. Accordingly, the different tax slabs are Rs.20, Rs.40, Rs.60 and Rs.80.

Karnataka

The professional tax calculation is extremely easy in Karnataka. Individuals earning above Rs.15,000 per month must pay Rs.200 as professional tax.

Kerala

While it is difficult to calculate GST like a pro, the professional tax slab in Kerala is no less. There are 8 different slabs which are Rs.20, Rs.30, Rs.50 Rs.75, Rs.100, Rs.125, Rs.166, and Rs.200 (Rs.212 in February) per month.

Madhya Pradesh

For individuals with yearly earning between Rs.1.5 and Rs.1.8 lakh, the tax is at Rs.125 per month. For individuals earning more than Rs.1.8 lakh per annum, the tax is Rs.212 per month.

Maharashtra

Individuals earning above Rs.10,000 pay Rs.200 per month as the professional tax on salary, though it goes up to Rs.300 in February. For individuals earning between Rs.7,500 and Rs.10,000; this sum is at Rs.175 per month.

Meghalaya

Meghalaya has one of the most complicated professional tax slabs. The 11 different slabs are Rs.16.50, Rs.25, Rs.41.50, Rs.62.50, Rs.83.33, Rs.104.16, Rs.125, Rs.150, Rs.175, Rs.200, and Rs.208 (Rs.212 in February) per month.

Odisha

The professional tax in Odisha is divided into 6 slabs which are Rs.30, Rs.50, Rs.75, Rs.100, Rs.150 and Rs.200 per month.

Sikkim

While there are many ways in which GST impacts business, in Sikkim there is a professional tax too. It is divided into 3 slabs of Rs.125, Rs.150, and Rs.200 per month.

Tamil Nadu

Professional tax calculator should be used in case of Tamil Nadu. Levied on a half-yearly basis, the slabs are Rs.100, Rs.235, Rs.510, Rs.760, and Rs.1095.

Telangana

Of the different things every business owner needs to know about professional tax in Telangana, the rates are quite convenient. Much alike Karnataka, the two slabs are Rs.150 and Rs.200 per month.

Tripura

Like in quite a few states, professional tax is divided into 5 slabs in this state. Professionals have to pay Rs.70, Rs.120, Rs.140, Rs.190, or Rs.200 (Rs.212 in February) per month.

West Bengal                         

Understanding what is a professional tax in West Bengal can be difficult since it is divided into 5 slabs according to income groups. These slabs are Rs.90, Rs.110, Rs.130, Rs.150 and Rs.200 per month.

Earning individuals might be worried about how to calculate professional tax. However, the tax is deducted from their salary, and hence, they do not need to make any calculations.

In the case of businesses, the tax is based on their annual earnings. Firms may also have to show proof of professional payment when availing several services, like business loans.

Described in the second clause of Article 276 of the Constitution, any state can levy professional tax. While there are a few states which do not ask its citizens to pay professional tax, several states in India have made this tax mandatory.

Vitally, disabled individuals, parents of disabled individuals, members of defence forces, senior citizens, etc. are exempted from this tax.

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