Gujarat Professional Tax Slab Rate

Professional tax is charged on salaried individuals and is paid to the Gujarat state government. Professional tax is deducted by the employer and the amount varies based on the employees’ income. The slab rates are decided by the state government.

Professional Tax in India:

There is a special kind of tax levied on salaried individuals and people engaged in profession, trade and calling in India and it is called Professional tax. The tax has to be paid to the state government and the professional tax amount to be paid depends on the income of the individual in accordance with the income tax slab rates of that state. Professional tax has been in practise for a long time. The maximum amount of professional tax that can be levied is Rs.2,500 per year.The total amount of professional tax paid during the year qualifies for deduction under the Income tax act, 1961.

How to Register for Professional Tax in Gujarat?

The employer should apply for Registration certificate to Gujarat tax department within 30 days of employing staff for their business. The individual should apply separately for each business if they have more than one business.

Depositing the Tax Amount Deducted:

If the business owner or employer has employed more than 20 employees, they should make the payment within 15 days from the end of the month. The employer can make the payment quarterly if they have less than 20 employees. Employees can pay in treasury by challan through the bank if they are covered under the jurisdiction of state government as designated authority.

Gujarat Professional Tax Slab Rates and rates

Listed below is the profession tax slab rates for the year 2019-2020 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
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
Who Deducts and Pays Professional Tax?

Every Indian resident who engaged in a profession, calling, trade or employment is liable to pay professional tax. The tax amount to be paid depends on their salary and the professional tax slab rates set by the state.

The professional tax amount is deducted by the owner of the company or business from the employee’s (taxpayer) salary or income. The tax amount is collected from all the employees and paid to the state government.

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