Professional Tax in Punjab

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.

Who Pays Professional Tax in Punjab?

The following categories of people are included under the ambit of professional tax payment:

  • In the case of an employee, the employer would deduct an amount as part of the professional tax deduction from the salary and direct the payment towards the Government
  • As stated by the Punjab State Development Tax Act, 2018, if the employee is employed under more than one employer, the employee has the right to pay his share of professional tax to the government by registering themselves. After a declaration is given by the employee to the employers regarding the same, the employer is not liable to deduct any tax from the employee’s wages.
  • In the case of individuals engaged in a business or profession, the individual is liable to register themselves under the state government to pay taxes as dictated under Section 6 of the Punjab State Development Tax Act, 2018.

The following individuals who work in Punjab are exempted from the liability of paying professional tax:

  • Senior Citizens
  • People who earn wages on a casual basis
  • Individuals who are completely reliable on agricultural activity for making an income

Professional Tax Slab Rates in Kolkata, West Bengal

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.

Class of Persons Professional Tax Payable Per Month (Rs)
Every individual who is assessable under the Head Income from Wages as per the Income Tax Act, 1961. 200

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

  • If an employer doesn’t deduct professional tax at the time of payment of wage, or after deducting fails to pay the fee as required by or under this Act, he/she is liable to pay a simple interest at a rate of two percent of the amount of the tax pending for each month or for the period for which the charge remains unpaid, in addition to the amount of tax.