Professional tax is the tax imposed by the government on all individuals who are salaried professionals or are professionals such as lawyers or doctors. This tax of Madhya Pradesh depends on the tax slab rate prevalent in Madhya Pradesh.
Professional Tax:
Professional tax is the tax levied by the Government of India on individual earning income from salary or professionals such as doctors, lawyers, accountants. Professional tax is imposed at state level in India and each state has a different method of collecting tax. Professional tax is a source of revenue for the government. Professional tax is compulsory in India just like income tax.
Working professionals, traders and people employed in other places have to pay professional tax if their salary qualifies for it. The professional tax levied is collected by the state government of Madhya Pradesh and the tax levied depends on the professional tax slab rate of Madhya Pradesh.
Madhya Pradesh falls under the category of states that charge professional tax. The professional tax amount to be paid depends on the professional tax slab rate of the particular state. The tax slab rate is different for each year. Given below is the professional tax slab rate for Madhya Pradesh for the year 2019-2020.
Monthly Salary/Income | Professional Tax Levied |
Up to Rs.18,750 | Nil |
Rs.18,751 to Rs.25,000 | Rs.125 |
Rs.25,001 to Rs.33,333 | Rs.167 |
Rs.33,334 and above | Rs.208 for 11 months and Rs.212 for the last month |
The state of Madhya Pradesh levies professional tax of Rs.202 for first 11 months and professional tax of Rs.212 for the last month for individuals with salary above Rs.15,000.
Professional Tax Amount:
The amount of professional tax levied usually is a slab amount based on the gross income of the professional. The tax amount is deducted every month from the individual's salary. Every state has a different tax slab and the amount is based on that tax slab.
Who has to pay Professional Tax?
As stated in the Article 276 of constitution of India, the tax shall be levied on professions, trades, callings and employments in accordance with provisions of the act. Every Indian resident who is engaged in any profession, trade calling or employment and earning income has to pay profession tax to the state government compulsorily.
Who deducts Professional Tax?
The owner of a business\institution is responsible for deducting professional tax from their employees salary/income. The amount is collected and later paid to the government.
States where Professional Tax is Applicable
Listed below are the states in India where professional tax is applicable.
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