Professional Tax

Profession tax is the direct tax levied and collected by the state governments in India. It is a direct tax. A person earning an income from salary or anyone practising a profession such as chartered accountant, company secretary, lawyer, doctor, etc., must pay this professional tax.

The state government levies professional tax and thus can vary depending on your state. The maximum limit of which you can be charged is Rs 2500. The tax is calculated based on the slabs.

Under this scheme, professionals can declare their taxable income at a fixed rate of 50% of their gross receipts without deductions for expenses or depreciation. Till F.Y. 2022-23, the threshold for eligibility under Section 44ADA is the gross receipt of Rs 50 lakh.