What is Professional Tax? Gujarat Professional Tax Slab Rate


Updates and details for What is Professional Tax? Gujarat Professional Tax Slab Rate:

Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax.

Since it is a tax that is levied by the state government, it performs to differ from one state to another. Each state has a slab that it declares and the professional tax is deducted based on these slabs. There are some states and union areas that do not charge professional tax too. How it is paid is by dividing the annual professional tax due into 12 equal installments that are paid every month, except the one paid in February which is higher than the other months.

Must check: GST Tax Rate in India

There may also be situations where sources of income falling under different sectors will be also be liable for a separate tax. For example, in some states, a person running a business in the transport sector may be required to pay a professional tax of about Rs. 50 per annum for each of the vehicles owned and it may be subject to a cap of Rs. 1,000 per annum.


List of States and Union Territories in India where Professional Tax is not Applicable:

  • Arunachal Pradesh
  • Andaman and Nicobar
  • Chandigarh
  • Dadra and Nagar Haveli
  • Daman and Diu
  • Delhi
  • Goa
  • Haryana
  • Himachal Pradesh
  • Jammu and Kashmir
  • Lakshadweep
  • Nagaland
  • Punjab
  • Rajasthan
  • Uttaranchal
  • Uttar Pradesh


Gujarat Professional Tax Slab Rates:

Below is the list of profession tax slab rates for the state of Gujarat.

Monthly Income of the TaxPayer Professional Tax Amount Payable
For salary up to Rs.5,999 Nil
For salary between Rs.6,000 to Rs.8,999 Rs.80
For salary between Rs.9,000 to Rs.11,999 Rs.150
For salary of Rs.12,000 and above Rs.200

Professional Tax Return In Gujarat

Professional Tax return should be filed within 15 days of the expiry of the previous month. One can apply for the annual return. The discretion is with the tax authority. If there are less than 20 employees, the employer can file a return annually. The return should be filed within 15 days of the expiry of the previous year.

Interest on late payment

The Gujarat government charges interest on professional tax if it is paid late. The interest rate of such late payment is 18% yearly. Along with this, a penalty is also charged.


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