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Professional tax can be defined as a tax that is levied by a state government on all individuals who earn a living through any medium. This must not be confused with the definition of other professionals such as doctors or lawyers. This is a type of tax that needs to be paid by each and every individual earning income. Unlike income tax which is levied by the Central Government, profession tax is levied by the government of a state or union territory in India. Majority but not all of the Indian states impose profession tax. While states like Karnataka and Maharashtra have profession tax, there is no such tax applicable in Delhi and Haryana.

Professional Tax Applicability
Professional Tax is applicable for the below-mentioned individuals and entities:

  • Companies
  • Firms
  • LLPs
  • Corporation
  • Societies
  • HUF
  • Associations
  • Clubs
  • Legal practitioners such as solicitors
  • Contractors
  • Architects
  • Engineers
  • Insurance agents
  • Chartered Accountants
  • CS
  • Surveyors
  • Tax consultants
  • Management consultants
  • Medical representatives such as doctors, medical consultants, and dentists
Major Indian States and Union Territories Which Levy Profession Tax

Following are some of the Indian states and union territories where professional tax is applicable:

  1. Andhra Pradesh
  2. Karnataka
  3. Maharashtra
  4. Tamil Nadu
  5. Assam
  6. Kerala
  7. Meghalaya
  8. Tripura
  9. Bihar
  10. Jharkhand
  11. Madhya Pradesh
  12. West Bengal
  13. Manipur
  14. Mizoram
  15. Odisha
  16. Puducherry
  17. Sikkim
  18. Telangana
  19. Nagaland*
  20. Chhattisgarh
  21. Gujarat

*According to the Nagaland Department of Taxes, professional tax is applicable in the state, however, other widely-followed publications there is no professional tax applicable in Nagaland.

Major Indian States and Union Territories Which Do Not Levy Profession Tax

Following are some of the Indian states and union territories where no professional tax is applicable:

  1. Arunachal Pradesh
  2. Himachal Pradesh
  3. Delhi
  4. Haryana
  5. Uttar Pradesh
  6. Uttarakhand
  7. Andaman and Nicobar Islands
  8. Daman & Diu
  9. Dadra and Nagar Haveli
  10. Lakshadweep
  11. Jammu & Kashmir
  12. Punjab
  13. Rajasthan
  14. Chandigarh
  15. Goa
Profession Tax Rates
State Income per Month Tax Rate/Tax Amount (p.m.)
Andhra Pradesh
Less than Rs. 15,000Nil
Rs. 15,000 to less than Rs. 20,000Rs. 150
Rs. 20,000 and aboveRs. 200
Gujarat
Up to Rs. 5999Nil
Rs. 6000 to Rs. 8999Rs. 80
Rs. 9000 to Rs. 11999Rs. 150
Rs 12000 and aboveRs. 200
Karnataka
Up to Rs. 15,000Nil
Rs. 15,001 onwardsRs. 200
Kerala (Half yearly income slabs and half yearly tax payment)
Up to Rs.11,999Nil
Rs.12,000 to Rs.17,999Rs.120
Rs.18,000 to Rs. 29,999Rs.180
Rs.30,000 to Rs. 44,999Rs.300
Rs.45,000 to Rs. 59,999Rs.450
Rs.60,000 to Rs. 74,999Rs.600
Rs.75,000 to Rs. 99,999Rs.750
Rs.1,00,000 to Rs. 1,24,999Rs.1000
Rs.1,25,000 onwardsRs.1250
Maharashtra
Up to Rs. 7,500Nil (for male)
Up to Rs. 10,000Nil (for female)
From Rs. 7,500 to Rs. 10,000Rs. 175 (for male)
Rs. 10,000 onwardsRs. 200 for 11 months + Rs. 300 for 12th month
Telangana
Up to Rs. 15,000Nil
Rs.15,001 to Rs.20,000Rs. 150
Rs.20,001 onwardsRs.200
Up to 5 years (For professionals such as legal practitioners, CA, architects, etc.)Nil
Over 5 years (For professionals such as legal practitioners, CA, architects, etc.)Rs. 2,500 (per annum)
West Bengal
Up to 10,000Nil
10,001 to 15,000Rs. 110
15,001 to 25,000Rs.130
25,001 to 40,000Rs. 150
40,001 and aboveRs. 200