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What is professional tax in MP?

Author

Avery Gonzales

Updated on March 19, 2026

What is professional tax in MP?

Professional Tax Levied
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.

Keeping this in consideration, who qualifies for professional tax?

For example: Parents or guardian of any person who is suffering from mental retardation, blind persons are exempted among others from levy of Karnataka Professional tax.

Secondly, what is professional tax in GST? As the rights remain with the State Government, certain states do not charge professional tax too. The tax is levied based on the slab rates depending upon the income of the individual. However, the maximum amount any State can levy as Professional Tax is restricted to ₹ 2,500.

In this manner, what is the meaning of professional tax?

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 is a type of tax that needs to be paid by each and every individual earning income. The calculation of this tax and the amount collected differs from one state to another.

Is professional tax taxable?

Professional tax or tax on employment is a tax levied by a state, just like income tax which is levied by the central government. It is usually deducted by the employer and deposited with the state government. In your income tax return, professional tax is allowed as a deduction from your salary income.

Who is exempt from paying professional tax?

An individual suffering from a permanent physical disability (including blindness). Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings. Parents or guardians of individuals suffering from mental disability. Individuals, above 65 years of age.

Is professional tax applicable for company?

Levied under Article 276(2) of the Indian Constitution, Professional Tax is deducted by the employer from the salaries of employees every month and remitted to the state; the maximum amount that can be levied annually under this head is Rs 2,500. Second, Professional Tax deduction is exempt from income tax.

Is professional tax registration mandatory?

This registration is mandatory for business whether they employ any people in employment or not. Every registered business with Enrollment Certificate shall pay tax every year before 30th of April at the specified rates. The rate of Employer Professional Tax for Company, LLP and Partnership is Rs.

How can I get professional tax back?

Professional tax is paid at the end of month presuming that you have carried out the profession in that month. Therefore once professional tax is paid, there can be no refund.

Why do we pay professional tax?

Profession Tax is a tax which is levied by the state on the income earned by way of profession, trade calling or employment. In the case of salary and wage earners, the profession tax is to be deducted by the employer from salary and wages, and the employer is liable to pay it to the state government.

How do I pay my professional tax?

A step-by-step guide on how to pay professional tax
  1. Highlights.
  2. Locate the professional tax website for your state.
  3. Fill the professional tax payment form carefully.
  4. Verify the information and pay professional tax online.
  5. You can also pay this tax at the district sales tax office.

How do directors pay professional taxes?

200 per month ( Rs. 300 for February month) from each directors salary and make such tax payments. While if directors are being paid professional fees and not salary, the directors will have to separately obtain PTE no. and pay Rs 2500 annually.

Who is liable for professional tax registration?

Every employee whose income is Rs. 15000 or more is liable to pay professional tax of Rs. 200 per month. The employer is liable to pay this amount to the government deduct this amount from the salary of the employee.

What do we mean by profession?

Profession means a declaration. Tellling someone you did something wrong is an example of a profession of guilt. The definition of a profession is a job, or what you do for a living. A lawyer is an example of a profession. When you work as a teacher, this is an example of a situation where education is your profession.

What is professional tax and how is it calculated?

Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

Is professional tax mandatory after GST?

After the GST , four state taxes— luxury, entertainment, entry, central sales tax (levied by State Government) has been abolished. However, professional tax would remain there. Under the Constitution, states and civic bodies are empowered to levy the tax. Ceiling limit is Rs 2,500 annually.

Is professional tax deducted every month?

Levied under Article 276(2) of the Indian Constitution, Professional Tax is deducted by the employer from the salaries of employees every month and remitted to the state; the maximum amount that can be levied annually under this head is Rs 2,500. Second, Professional Tax deduction is exempt from income tax.

What is PT deduction in salary?

Profession tax is the tax levied and collected by the state governments in India. It is a indirect tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax.

What is the due date for payment of professional tax?

January 31. Individuals - File your income tax return (Form 1040) for this year if you did not pay your last installment of estimated tax by January 15. Filing your return and paying any tax due by January 31 prevents any penalty for late payment of last installment.

What is meant by gross salary?

Gross salary is the term used to describe all of the money you've made while working at your job, figured before any deductions are taken for state and federal taxes, Social Security and health insurance. If you work more than one job, you'll have a gross salary amount for each one.

How much income tax do I pay?

Calculate Taxable Income on Salary?
Net IncomeIncome Tax Rate
Up to Rs.2.5 lakhsNil
Rs.2.5 lakhs to Rs.5 lakhs5% of (Total income – Rs.2.5 lakhs)
Rs.5 lakhs to Rs.10 lakhsRs.25,000 + 20% of (Total income – Rs.5 lakhs)
Above Rs.10 lakhsRs.1,12,500 + 30% of (Total income – Rs.10 lakhs)

What is Gratuity Fund?

A gratuity fund is a part of the salary an employee receives from his/her employer in gratitude for the work the employee does for the company. Gratuity is a defined benefit plan and is mostly a retirement benefit offered by the company to the employee upon leaving his/her job.

How do I pay GST professional tax?

Professional tax - Karnataka is nil up to a monthly income of Rs 15,000.

How to pay the professional tax?

  1. Visit your state's GST website and look for the 'e-Payments' tab.
  2. Select your applicable status under the Statutory Order, enter your PAN/ TAN number along with the captcha image shown.

How is income tax calculated for salaried person?

Income tax calculation for the Salaried
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance.

Is professional tax registration mandatory for GST registration?

Registration is not compulsory but you have to paid the tax as per regime mention under the law it may be 500 to 1000 rs max in your case jharkhand professional tax list is given in the portal itself.

Is professional tax and income tax same?

As the very names suggest, professional tax is a tax on profession (which may include any occupation, trade, calling or employment), Income Tax is a levy on Income only. While Income Tax is necessarily a central tax, professional tax can be levied by state governments only.

What is TDS income tax?

1. What is TDS? TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.

What is the criteria for professional tax?

Professional Tax calculation is based on predetermined slabs and on the basis of the salary or monthly income levels. It is usually around Rs 200 a month, with the maximum payable in a year being Rs 2,500.

What is the standard deduction for AY 2019 20?

50,000

How can I save tax on 12 lakhs?

Deduction under 80C is related to deduction that an individual can deduct from his gross taxable income in order to reduce his tax liability by investing in specified investment. It is applicable to individuals and HUF. An assessee can get deduction under section 80C upto a maximum of Rs. 150000.

What is section 10 exemption?

Section 10 for salaried employees under the Income Tax Act covers a wide range of allowances ranging from house rent and leave travel allowance to research/academic allowance and uniform allowance. Most allowances are a part of the total income unless they come under some specific exemption under the Income Tax Act.

How do you avoid taxes?

There are also other legal ways to avoid tax which are well worth looking at.
  1. Use your Isa allowance.
  2. Save into a pension.
  3. Use your capital gains tax allowance.
  4. Use your partner or spouse's tax allowance.
  5. Use childcare vouchers.
  6. Think about where you buy your insurance from.
  7. Eat more healthily.

How can I save my maximum income tax?

Recommended ways of saving taxes under Sec 80C & 80D
  1. Make investment of Rs 1.5 lakh under Sec 80C to reduce your taxable income.
  2. Buy Medical Insurance & claim a deduction up to Rs.
  3. Claim deduction upto Rs 50,000 on Home Loan Interest under Section 80EE.

How do you figure out tax?

To calculate sales tax, first convert the sales tax from a percentage to a decimal by moving the decimal 2 places to the left. Then multiply the cost of the item or service by that decimal to get the sales tax. Remember to add the sales tax to the cost of the item or service to get the total amount you will pay for it.

How can I reduce my taxable income in 2019?

Save Toward Retirement
The simplest way to reduce taxable income is to maximize retirement savings. Those whose company offers an employer-sponsored plan, such as a 401(k) or 403(b), can make pretax contributions up to a maximum of $19,500 in 2020 ($19,000 in 2019).

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