Professional tax is a direct tax levied by the State Government on all kinds of professions, trades and employment in proportion to the income of the individual. Article 276, Clause 2 of the Indian Constitution covers the provision concerning professional tax in the country. Professional tax is imposed by state governments on the individuals who are employed in governmental, private and non-governmental organizations. The quantum of levy varies according to the strata of income.

In the Article 276, Clause 2 of the Indian Constitution, the State Government of West Bengal is given right to collect professional tax on income earned various sources. Professional tax in West Bengal is managed by West Bengal Tax on Profession, Trade, Callings and Employment Act, 1979.

Salaried Individuals: The employers are entrusted with the responsibility of paying the profession tax on employees’ behalf after deducting it from their salary. The employees can claim for the income tax deduction on the profession tax under Section 16(iii) of the Income Tax Act, 1961.

Self-Employed: Though the same slab rate is applicable for the self-employed individuals, they need to self-deposit the profession tax. Further, they can not claim it for the tax deduction in their income tax returns.

Currently, the members of the forces and the members of Indian Navy serving in any part of West Bengal are exempted from the payment of professional tax. The exemption also applies for any person drawing a pay or an allowance as Army or Air Force or Navy. The members of auxiliary forces or reservists serving in any part of West Bengal and drawing pay and allowances as such auxiliary forces or reservists are exempted from payment of Profession Tax.

As per the Article 276, Clause 2 of the Indian Constitution, the State Government of West Bengal can charge professional tax on income earned various sources. Professional tax in West Bengal is managed by West Bengal Tax on Profession, Trade, Callings and Employment Act, 1979.

The State Government of West Bengal charges professional tax penalty charges under the following conditions: