Professional tax on salary is computed based on the state and income slab under which you fall. The income bracket will then give you a professional tax owed on a monthly or annual basis. The highest amount of tax that can be levied by any state is Rs.2,500 per annum. And the least slab rate is Rs.110 per annum.
Steps to Compute The Professional Tax on Salary
Step 1: See if the professional tax holds good in the state of residence
Step 2: If yes, determine the quantum of tax depending on the monthly income
Step 3: Check the tax slab rates according to your salary
This gives an idea of how much professional tax is deductible monthly.
For example: Let’s say that Mr. X is working in Odisha and his gross monthly salary is Rs. 26,000. Then the professional tax will be Rs. 200. Mr Y works in Assam, and his gross monthly salary is also 26,000. Then, the tax per month is Rs. 208 and 212 for February. This is for professional tax based on state.
Another instance for professional tax based on income:
A and B work in Tamil Nadu and reside there. A earns Rs. 10,000 and B earns Rs. 12,000. The professional tax that A has to pay is Rs. Rs. 115 and the amount of tax Ba has to pay is Rs. 171.
Here are some professional tax slabs for some important states
Professional Tax in Tamil Nadu
|
Salary per month |
Tax |
|
Up to Rs.3,500 |
NA |
|
Rs.3,5001 to Rs.5,000 |
Rs. 22.5 |
|
Rs.5,001 to Rs.7,500 |
Rs. 52.5 |
|
Rs.7,501 to Rs.10,000 |
Rs. 115 |
|
Rs.10,001 to Rs.12,500 |
Rs. 171 |
|
Above Rs.12,500 |
Rs. 208 |
Professional Tax in Telangana
|
Salary per month |
Tax |
|
Up to Rs. 15,000 |
NA |
|
Rs. 15,000 to Rs. 20,000 |
Rs. 150 |
|
Rs. 20000+ |
Rs. 200 |
Professional tax in Kerala
|
Salary per month |
Tax |
|
Up to Rs. 1999 |
NA |
|
Rs. 3,000 to Rs. 4,999 |
Rs. 20 |
|
Rs. 3,000 to Rs. 7,499 |
Rs. 30 |
|
Rs. 5,000 to Rs. 7,499 |
Rs. 50 |
|
Rs. 7,500 to Rs. 9,999 |
Rs. 75 |
|
Rs. 10,000 to Rs. 12,499 |
Rs. 100 |
|
Rs. 12,500 to Rs. 16,666 |
Rs. 125 |
|
Rs. 16,667 to Rs. 20,833 |
Rs. 166 |
|
Rs. 20,834+ |
Rs. 208 |