Professional tax slab in maharashtra 2022-23

Profession Tax is a state-level tax that is levied by the government on individuals who earn an income through employment, business, trade, or profession. The tax is levied as per the provisions of the respective state government’s legislation. In Maharashtra, Profession Tax is levied under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. It is a tax that is applicable to all individuals who are engaged in any kind of profession, trade, or employment in the state of Maharashtra. The tax is collected by the respective employers from their employees and deposited with the government. The rate of Profession Tax in Maharashtra varies depending on the income earned by an individual. The tax is levied on a monthly or yearly basis, as per the provisions of the legislation. The maximum amount of Profession Tax that can be levied in Maharashtra is Rs. 2,500 per annum. In summary, if you are a resident of Maharashtra and earn an income through a profession, trade, or employment, then you may be liable to pay Profession Tax as per the provisions of the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. What is threshold for deduction of Profession Tax in Maharashtra ? In Maharashtra, the threshold limit for the deduction of Profession Tax is an income of Rs. 7,500 per month. This means that if an individual’s monthly income is less than Rs. 7,500, then they are not required to pay Profession Tax. However, if an indiv...

Whether you are a working professional or have a business, it is imperative to pay professional taxes. It is a deduction that you will notice on your pay slip. If you are an employee and have noticed your employer deducting this tax every month, you must know everything about this tax. All self-employed, salaried individuals and organisations are liable to pay professional tax in Maharashtra, depending on their income. This article will provide all details on professional tax payment. Professional Tax In Maharashtra The state government imposes a professional tax on your earned income. As per Article 276 of the Indian Constitution, whether you are a salaried employee or belong to any profession, you are liable to pay professional tax as per the applicable rate. The Maharashtra state government sets the tax rates and the income slabs. Maharashtra Professional Tax Rule Under the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules, the government can impose a professional tax. As per Maharashtra professional tax rule, every salaried employee needs to pay this tax. Employers of such employees and self-employed individuals must obtain a certificate of registration or certificate of enrolment from the prescribed authority. Furthermore, you should apply for enrolment or registration within 30 days from the commencement date of your profession/business. Professional Tax Applicability in Maharashtra Professional tax in Mumbai applies to the foll...

Professional Tax If you ever take a look at your payslips you will notice that there is a small deduction mentioned along with all the HRA, conveyance and basic salary break ups. This deduction is generally to the tune of INR 200 or so and is called the professional tax. This tax is generally different for each state and in certain place you may notice that there is no deduction made under this heading. So the question is, what is professional tax? What is Professional Tax? The respective state governments in India levy the professional tax on income from profession or employment. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government. In case of other class of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one state to another, but it has a maximum limit of INR 2500/- per year. Professional Tax Registration and Returns Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. Professional tax needs to be deducted from the salary or wages paid amount. Application for the Registration Certificate should be mad...

Introduced in 1949, professional tax is a direct tax deducted from earning individuals’ salary or wages by the employer. Just like in any other deductions, such as tax deducted at source (TDS) and employee provident fund (EPF), the professional tax is paid by individuals from their gross monthly income. The State Government, which is responsible for deduction and deposition of the professional tax, the amount is predetermined on the basis of one’s monthly, half-yearly, or annual income, and it varies from state to state. Forbes Advisor India has listed the professional tax slab and amount deducted by major states and a union territory (UT). Once the taxpayer knows which slab they fall into, it becomes easier to avoid any charges on default payments and there’s income tax benefits as well. Summary • • • • • • • • • • • • • • • • • • • • • • Professional Tax Slab in Major States and UTs Most state governments and a few UTs have imposed professional tax. However, some states like New Delhi, Haryana, Maharashtra, among others have exempted from collecting it. The professional tax is deducted according to the slabs declared by respective state governments. Professional Tax Slab in Andhra Pradesh

Professional tax in India is levied on anyone who is employed. From professionals such as accountants, lawyers, etc. to traders and business persons. However, professional tax is applicable only if the income crosses a certain limit, just like Income Tax. This post discusses professional tax in detail – what it is, professional tax slabs, exemption and the difference between income tax and professional tax. Read on! What is Professional Tax? It is a tax on your profession, trade, and employment among others, based on certain income limits. It is collected based on different Also Read: Who Levies & Collects Professional Tax in India? As per article 276 of the Indian Constitution, the state government levies and collects it. Different states have passed their own Professional Tax Acts (PT Acts) which empower them to levy & collect this tax. The state governments collect PT through their tax departments. In practice, employers deduct the tax every month from your salary and pay the state government taxation department. However, if you work as a freelancer or independently, you must pay the tax directly to the state government through the taxation department. Professional Tax Applicability Many states and union territories in India levy this tax based on different income criteria.If you are an employee of a company, you probably need to pay it unless the state government does not collect it. State governments also provide exemptions in some cases.Professional Tax is applicable...