Overview |
Exemptions |
Applicability |
Responsibilty |
Compliance |
Documents Required |
Exemptions
As stated earlier the tax law is framed by respective states, the exemption list varies in each state. However, there are some common exemptions allowed in professional tax acts of various states.
• Members of the armed forces
• Foreign employees
• Individuals with a permanent physical disability
• Workers engaged in the textile industry
• Individuals with income less than specified in various state acts
Overview
Professional Tax is a state tax levied on the income of the professional. It is also levied on trade, professions, freelancers and callings. The tax is levied based on income but is levied by state governments. The tax on income is a central subject, hence only states are empowered to make laws on profession, trade and callings. It is pertinent to note that, even though the professional tax is based on the income of the professionals but this is not an income tax. The tax is collected by the commercial tax department of various states and it ultimately reaches the municipal corporation funds
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