Professional Tax

Legislative Authority

Article 276 of the Constitution of India authorizes the State Legislatures to levy taxes on professions, trades, callings and employments in their states. Initially, the article had stipulated Two Hundred and Fifty rupees per annum as the maximum limit of taxes leviable by a state. However, vide Sixtieth Amendment in the Constitution in 1988, this limit has been enhanced to Two Thousand and Five Hundred rupees per annum as the maximum amount of taxes payable by any one person to a State or to any one municipality, district board, local board or other local authority in the State.

State Specific Laws

  • In exercise of the powers vested under Article 276 of the Constitution, certain states have enacted laws to levy tax on Professions, Trades, Callings and Employments. The Acts governing tax on Professions, Trades, Callings and Employments in the respective states are listed herein below:
  • Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987
  • Assam Professions, Trade Callings and Employments Taxation Act, 1947
  • Chhattisgarh Professional Tax Act, 1995
  • Gujarat State Tax on Profession, Trades, Callings and Employments Act, 1976
  • Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976
  • Madhya Pradesh Professional Tax Act, 1995
  • Maharashtra State Tax on Professions, Trade Callings and Employments Act, 1975
  • Orissa State Tax on Professions and Trades, Callings and Employments Act, 2000
  • Punjab Finance Act, 1977 regulating Tax on Professions, Trades, Callings and Employments in Punjab
  • Rajasthan Tax on Professions, Trades, Callings and Employment Act, 2000
  • Sikkim Tax on Professions, Trades, Callings & Employments Act, 2006
  • Tamil Nadu Tax on Professions, Trades Callings, and Employment's Act, 1992
  • West Bengal State Tax on Professions and Trades, Callings and Employments Act, 1979

EXPERTISE

Services We Offer

We are Labour Law Consultants and at PCS, we offer following services in relation to compliances under state specific laws on Professional Tax:

  • Providing day to day consultancy on matters pertaining to tax on Professions, Trades, Callings and Employments
  • Registration / Enrolment under Professional Tax
  • Assistance in deduction and payment of Professional Tax
  • Preparation & Filing of periodical returns
  • Assistance in recovery proceedings
  • Assistance at the time of inspetion of accounts & documents and search of premises
  • Appeal to Appellate Authorities
  • Compounding of Offences