Professional tax is the tax that will be paid by every salaried employee to their respective state government. Professional tax slab rates vary from one state to another state in India. The timeline for payment of professional tax also varies in each state it will be monthly, half-yearly and annually. Non-payment of professional tax will lead to the interests. The amount collected in the form of professional tax will be used for the development schemes of the respective states.
Every salaried employee and persons who are practising professions such as a lawyer, chartered account and doctor need to pay the professional tax to their state government.
Who Will Pay Professional Tax
Generally, the employer will deduct the professional tax from the salary of the employee and they will make the payment. Employees can check the details of professional tax deduction in their pay slips.
To Whom We Need To Pay Professional Tax
Salaried employees and persons who are practising professions like doctor, lawyer and the chartered account can pay professional tax either in online or offline.
Nowadays every state government is accepting PT payments online at dedicated professional tax websites or commercial tax websites. At the same time, offline payments can also be done at respective commercial tax department offices.
How To Calculate Professional Tax On Salary
There is no formula to calculate professional tax on salary, Professional tax slab rates will be fixed by state governments and professional tax rates vary from one state to another state.
Professional Tax Slab Rates 2018-19 Statewise In India
Professional Tax Applicability
Professional tax is applicable to majority states of India, but in some states and union territories, the professional tax is not applicable. Here is a list of professional tax applicable and non-applicable states.