Professional Tax

News: Swiggy faces a tax demand of ₹7.59 crore from the Maharashtra Government over alleged non-compliance with professional tax deduction norms. Professional Tax.

About Professional Tax

• Professional Tax is a tax charged on income earned through employment, business, freelancing, or any profession.
• It applies to all earning individuals, including salaried employees, business owners, and freelancers.
• Self-employed individuals such as shopkeepers, freelancers, consultants, and professionals like architects or chartered accountants also need to pay professional tax themselves if their income crosses a certain limit.
• It is imposed by the state government under Article 276 of the Constitution of India. It also has provided for a maximum cap of Rs.2,500, beyond which professional tax cannot be charged to any person.
• Professional tax is deductible under the Income Tax Act of 1961.
• Each state sets its own rules and tax slabs. The tax amount depends on the income of the person.