Andhra To Collect Professional Tax From April 1: What It Means For The Salaried Class & Its Pan-India Levy
Some Indian states impose professional tax on various professions and trades. Andhra Pradesh recently tasked its Department of Commercial Taxes to collect this tax from April 1.
Professional Tax: Recently, the Andhra Pradesh government assigned the Department of Commercial Taxes the responsibility of collecting professional tax starting April 01. Various states across India impose professional tax on individuals engaged in different professions, trades, and employment. The tax amount varies by state and profession.
Let’s understand what professional tax is and why it needs to be paid.
related stories
- Old Vs New Tax Regime Comparison: Which One Works Best For You In FY 2025-26? Experts Weigh In
- New Income Tax Rules Highlights: Tax Relief, UPI Deactivation And More- What All Changes From Today
- Income Tax Deadline: Last Day To Complete These Financial Tasks For ITR Season 2025
- From UPI, Income Tax To LPG Prices & Highway Tolls: Big Changes That'll Impact You From Today
What Is Professional Tax?
Professional tax is a levy imposed by each state’s commercial tax department on individuals earning wages in any capacity. Employers are responsible for deducting this tax before paying their employees’ salaries.
As professional tax is governed by state-specific statutes, each state has its own rules, slab rates, and deadlines. Employees fall into different salary brackets and thus pay varying amounts of professional tax.
This tax, being state-imposed, differs across states, with each state having its own laws and regulations. Nevertheless, all states apply a slab system based on income for levying professional tax.
Professional tax is collected by the Commercial Tax Department of the respective states, which then contributes to the municipal corporation’s fund.
The maximum professional tax any state can levy is Rs 2,500 per year. Moreover, the threshold of levying professional tax is different for women and men.
Which States Do Impose Professional Tax?
Karnataka, Andhra Pradesh, West Bengal, Maharashtra, Tamil Nadu, Telangana, Kerala, Madhya Pradesh, Nagaland, Odisha, Punjab, are some of states where professional tax is being levied.
Examples of Professional Tax Slabs In Select States:
Andhra Pradesh:
Monthly income up to ₹15,000: Nil
₹15,001 to ₹20,000: ₹150 per month
Above ₹20,000: ₹200 per month
AdvertisementMonthly income up to ₹5,999: Nil
₹6,000 to ₹8,999: ₹80 per month
₹9,000 to ₹11,999: ₹150 per month
₹12,000 and above: ₹200 per month
Monthly income up to ₹15,000: Nil
Above ₹15,000: ₹200 per month
Monthly income up to ₹7,500 (for men): Nil
Up to ₹10,000 (for women): Nil
₹7,501 to ₹10,000 (for men): ₹175 per month
Above ₹10,000: ₹200 per month (₹300 for the last month)
Monthly income up to ₹10,000: Nil
₹10,001 to ₹15,000: ₹110 per month
₹15,001 to ₹25,000: ₹130 per month
₹25,001 to ₹40,000: ₹150 per month
Above ₹40,000: ₹200 per month
Gujarat:
Karnataka:
Maharashtra:
West Bengal:
- Location :
- First Published: