Professional tax is a type of duty or levy that is imposed on the incomes of professionals engaged in various occupations, business owners, and employees of various organizations. In India, professional tax is a state level levy. Every employee in a private limited company has to pay this duty.Professional Tax in IndiaIn India, this state-level duty is imposed by different states at different prescribed rates. Madhya Pradesh, Gujarat, Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, and West Bengal are the major states in India that levy this tax.This kind of duty works as a significant source of revenue for the government. For salaried individuals, there are particular slabs according to which professional tax is worked out and collected from on https://hamiradio.co.jp/them. Similarly, there are slabs of income of people involved in other professions and occupations and in line with those slabs, the levy is collected.Are professional taxpayers eligible for income tax deduction?Yes, people paying this duty can qualify for IT deductions. As laid down by section 16(iii) of the IT Act, professional tax on service or duty on service imposed by the state under article 276(2) of the Constitution of India is permissible in the form of a deduction from the salary earnings.Who has to pay it?Professional tax has to be paid by the employee and this is the precondition for him or her for being eligible for the deduction. If he or she has not paid it, then no deduction will be allowed. Other conditions for deduction eligibilityIn case the professional tax is paid by the employer on the employee’s behalf, then the same amount will be considered as fringe benefit and subsequently, deduction will also be offered to the employee.Maximum amount under article 276(2): As laid down by Article 276(2) of the Constitution of India, municipality, State Government, or other governmental agency which is empowered under Article 276(2) can levy this duty on employment from an individual, subject to an upper limit of Rs. 2,500 per year.Professional Tax Slab Rates The professional tax slab rates are evaluated suitably on the basis of a blend of various elements. The first element to be taken into consideration is whether the assessee is a company or an individual. In case the assessee is an individual, then the age and gender of the assessee should be taken into account to determine the slab rate. The slab of earnings under which the individual comes is also taken into account to rightly evaluate the slab rates. Revenue from agriculture is not taken into consideration. In this way, income tax for individuals in India is a progressive form of levy with three slabs.Professional Tax (PT) in Maharashtra: What is the Scenario?The idea of professional tax is not unknown to people of Maharashtra. This duty is imposed on vocations, professions, services and businesses at the state level. The returns for this levy have to be filed at the appropriate time. The due date for payment of this levy differs with the amount of revenue. The PT return has to be filed in line with the rules and regulations of the state administration. The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 regulates the guidelines in relation to PT in Maharashtra. The duty is levied on organizations and individuals. Organization in this framework would incorporate a company, a firm, a proprietary business concern, a Hindu Undivided Family, a club, a society, an association of persons or any other organization as laid down by the Act. Cycle of Returns The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 mentions that:i) If the yearly professional tax liability is below Rs.5,000, the return has to be submitted every year;ii) If the yearly liability for PT is higher than Rs.5,000 but below Rs.20,000, return has to be filed on a quarterly basis;iii) If the yearly liability for PT is higher than Rs.20,000; return has to be filed every month.Responsibility on IndividualsIndividuals who are staying in Maharashtra have to get a Certificate of Registration i