Professional Tax Slab Rates

Tax Slabs in India

The set of professional tax slabs in India are different for all the 28 states in India and some of the states have formulated different professional tax slabs for men, women, and the senior citizens of the respective states.

Maharashtra's Tax Slabs:

The professional tax slabs in India are applicable to those citizens of India who are either involved in any profession or trade. The state government of each state is empowered with the responsibility of structuring as well as formulating the respective professional tax criteria and they are also required to collect funds through professional tax. The professional taxes are charged on the incomes of individuals, profits of business or gains in vocations. The professional tax is charged as per the List II of the Indian Constitution. The professional taxes are classified under various tax slabs in India. Maharashtra, the commercial capital of India follows the following professional tax slab:

Income Monthly Professional Tax
Less than Rs. 2500 Nil
Between Rs. 2500-3500 Rs.60
Between Rs. 3500-5000 Rs.120
Between Rs. 5000-10000 Rs.175
Beyond Rs.10000 Rs.200


Tamil Nadu's Tax Slabs:

The professional tax slab structure followed in Tamil Nadu on a half yearly basis is formulated as follows:

Income Monthly Professional Tax
Less than Rs.21000 Nil
Between Rs.21001-Rs.30000 Rs.75
Between Rs.30001-Rs.45000 Rs.188
Between Rs.45001- Rs.60000 Rs.390
Between Rs.60001- Rs.75000 Rs.585
Beyond Rs.75001 Rs.810

West Bengal's Tax Slabs:

West Bengal has created its respective professional tax slab structure to keep the residents informed about the exact deductions from their incomes. The professional tax slab in West Bengal has been categorized as per the following criteria:

Income Monthly Professional Tax
Less than 1,500 Nil
Between Rs. 1501- Rs. 2001 Rs. 18
Between Rs. 2001 - Rs. 3001 Rs. 25
Between Rs. 3001- 5001 Rs 30
Rs. 5001 Rs. 40
Between Rs. 6001 -7001 Rs.45
Rs.7001 Rs.50
Rs.8001 Rs.90
Rs.9001 Rs.110
Rs.15001 Rs.130
Rs. 25001 Rs.150
Beyond Rs.40001 Rs.200

Delhi's Tax Slabs:

The Indian capital has its own professional tax structure has been categorized under various heads like professional tax for corporate professionals, non-corporate professionals, corporate contractors, non-corporate contractor. The professional tax rate of the corporate professionals has been declared as 11.33% whereas the corporate contractors are required are levied 2.26% of their income towards their professional tax. The deductions for the non-corporate professionals have been adjusted at 10.30% of their incomes but that of the non-corporate contractors have been decided at 2.06% of their incomes. The professional tax slabs in terms of various income groups in Delhi, have been structured as follows:

Income Percentage of Professional Tax
Less than Rs.1,10,000 Nil
Between Rs.1,10,000-Rs.1,45,000 Nil
Between Rs.1,45,000-Rs.1,50,000 10 %
Between Rs.1,50,000-Rs.1,95,000 20 %
Between Rs.1,95,000-Rs.2,50,000 20 %
Beyond Rs.2,50,000 30 %


Delhi has also formulated a different professional tax slab for people with income beyond Rs. 10,00,000. Such income groups are required to pay10 % of their income as surcharge also. The professional tax structure in Delhi has been formulated to include an education cess also. The education cess is calculated by aggregating the amount of tax as well as the amount of surcharge and then 2% of the aggregate is deducted as the education cess. The professional tax structure for partnership companies includes surcharge at the rate of 10% of the profits. Partnership companies are required to pay 2% of their profits as education cess. The calculation of education cess for the companies also requires the aggregation of the income tax and the surcharge initially and then deducting 2% of the aggregate for education cess. The professional tax rate for the partnership firms has been decided at 30% of the profit and the effective rate of tax of these firms is 33.66 %.

Tax view on July 2009 Union Budget - TDS

TDS Rates

1.Applicable for AY 2010-11 (FY 2009-10).
2.194-I: Rental Payments
a.Earlier rates:
1.Plant and Machinery = 10%
2.Land or building or furniture or fittings to Individual/HUF = 15%
3.Land or building or furniture or fittings to Others = 20%
b.Revised Rates
1.Plant and Machinery = 2%
2.Land or building or furniture or fittings to anyone = 10%
3.194-C: Contracts
a.Earlier rates:
1.Contracts = 2%
2.Sub-Contracts = 1%
3.Advertisement Contracts = 1%
b.Revised Rates
1.Contracts to Individuals/HUF = 1%
2.Contracts to others = 2%
Surcharge and Cess

1.No surcharge or Cess is applicable for TDS. Only the specified TDS rates should be considered for deduction
2.Applicable for AY 2010-11 (FY 2009-10).
Payment to Transporters:

1.For any Transporters, if they Provide the PAN number, the TDS on contract payments is NIL.
2.But, if they do not provide the PAN during the payment, 1% TDS has to be made for Individuals/HUF and at 2% for others.
3.Payments to transporters without deducting TDS (as they have quoted PAN) should be reported by Deductor with PAN details to the Income Tax Department in the prescribed format.
4.Applicable for AY 2010-11 (FY 2009-10).
Compulsory PAN (Section 206AA)

1.It is mandatory to quote PAN in all correspondence, bills and vouchers exchanged between Deductor and deductee.
2.TDS shall be made at a flat rate of 20% (or actual rate, whichever is higher) for any payments, where assessee has not quoted the PAN during the payment.
a.This is applicable even in case where assessee gives Form 15G/15H u/s 197A.
b.This is also applicable for Non resident Payments.
3.Assessing officer shall not rise the letter for lower/no deduction, If assessee doesn’t quote a PAN.
4.Applicable for AY 2011-12 (FY 2010-11). Means the payments made on or after 01st April 2010.
TDS reconciliation (Section 200A)

1.A new section 200A is introduced.
2.TDS return filed by the deductor will be processed by the following way:
a.TDS deductible will be computed on the basis of data in TDS statement, after adjusting any arithmetic error or an incorrect claim.
b.The interest, if any, shall be computed on the basis of the sums deductible on the basis of data in TDS statement.
c.Any amount payable by / refund to Deductor shall be determined.
d.Intimation shall be sent to Deductor on Amount payable / refundable.
e.The amount refundable, if any shall be granted to Deductor.
TDS returns

1.Currently returns has to be filed Quarterly in Form 24Q/26Q/27Q/27EQ
2.Currently government is not allowed to decide the Periodicity of TDS returns, as the power is limited only for structure of forms and the manner.
3.In order to provide administrative flexibility in deciding the periodicity of such TDS related statements, the existing provisions are modified, so as to allow the Government to prescribe periodicity of such TDS statements besides prescribing their form and manner.
4.Applicable from 01st October 2009.
Computerized processing of TDS returns

1.Currently every TDS return involves manual-cum-computerized processing inside the department.
2.To make the process efficient, department will computerize whole process, where statements regard to TDS will be processed.
a.This will be on the same lines, how IT returns processing has been computerized in Income Tax Department.
b.This processing will allow manual interference for
1.Any arithmetical error in the statement.
2.An incorrect claim, if such incorrect claim is apparent from any information in the statement, for example, in respect of rate of deduction of tax at source where such rate is not in accordance with the provisions of the Act.
c.A Centralized Processing Center may be established in this regard.
1.Applicable for AY 2011-12 (FY 2010-11).