Professional Tax Returns
Professional tax is a tax levied on professions and trades in India, which is determined and collected by the state governments. Just like the Income tax, it is compulsory tax to be paid by every member of employees of private companies. According to the Article 276 of the Constitution of India, "There shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act. Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time."
The maximum amount payable per annum towards professional tax is INR 2,500. The professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month. In case of salaries or wages earned, to be deducted by the employer and has to be deposited with the state. Professional tax return needs to be filled every month by the employer.
Please be noted that the slab for professional tax varies across the states in India. We at My Office Accountant, help you effectively prepare and file professional taxes as per the respective state rules and regulations.