DEBOLINA ROY
State-level tax
Professional tax is not collected by the central government like regular income tax, but by each state. The state’s commercial tax authorities are in charge of using this revenue to fund projects for public development at the state level.
Applicable to all
Salaried employees, those in self-employed jobs, and registered organisations can all take advantage of this deduction. Employers deduct this automatically for their salaried employees, while self-employed individuals must submit their payments actively.
Constitutional cap
Salaried employees, those in self-employed jobs, and registered organisations can all take advantage of this deduction. Employers deduct this automatically for their salaried employees, while self-employed individuals must submit their payments actively.
Variable state slabs
The tax amounts and income limits vary considerably depending on where a person lives. Each state sets its own rates according to the monthly income earned, while some parts of the country provide special concessions for women and senior citizens.
Income tax deductions
Professionals who are salaried employees can readily avail the benefit of Section 16 of the Income Tax Act. But the perk of professional tax deduction is available solely to individual taxpayers who have opted to keep the old regime.
Specific category exemptions
Some organisations are entirely exempt from paying this tax. For instance, members of the armed forces, citizens aged 65 or older, educational organisations and people with permanently defining disabilities are not required to pay professional tax.