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  • "Professional Tax" in India - Pay the price for being a professional!

    Kaustubh Katdare

    Administrator

    Updated: Oct 20, 2024
    Views: 1.7K
    I'm in the process of setting up the legal documents and the discoveries I make almost on daily basis shock me like anything! As an employer, the hiring company must deduct a professional tax from employee's salary! In other words, the professionals will have to pay the price for being professional! How insane can it be? This tax is collected by the state government and not the central government. It's also interesting to note that not all the states in India collect professional tax; only select few states require professional to be taxed - Maharashtra, New Delhi, Gujarat, Karnataka, WB, MP, Tamil Nadu, Andhra Pradesh. I'm not sure about the other states though.

    There's also a correlation between the salary offered to the employee and the professional tax he/she must pay. In Maharashtra, it's as follows-
    • (Salary) < 5000 pm : NIL
    • Rs. 5001 - Rs. 10,000 pm : Rs. 175 pm
    • > Rs. 10,000 pm : Rs. 200 from April to February and Rs. 300 for month of March (?)
    Don't you think professional tax is totally useless and just a government's ploy to loot the professionals? Would like to know from startup folks here what do they think about this type of taxes.
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Replies

  • Sarathkumar Chandrasekaran

    Member • Oct 18, 2013

    It has both sides as coins.We may see that it is a headache to us where the tax seems to be disturbing our expenses but if it was planned for the interest of the state , It's quite a good idea. I agree that the tax is high and government should take a note that the tax fixation is justifiable.
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  • Nayan Goenka

    Member • Oct 19, 2013

    I dont see any reason why ₹300 is so lucrative for the government. What is the point of studying, if ultimately some day you have to pay tax because you are educated and have a job. LOL. "Welcome to India" moment this is 😛

    Maybe it will make more sense if they supply the reason behind the taxes they impose on people.
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  • Sarathkumar Chandrasekaran

    Member • Oct 19, 2013

    So do you want the government to collect taxes from farmers .Yes I agree that if professionals are taxed, Government should also tax business class people based on their turnover and profit.
    If possible post the reason why they are taxing different amount at different months?
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  • Nayan Goenka

    Member • Oct 19, 2013

    Bro I think you don't know much about business. We are already paying taxes depending upon our income via Returns, Sales tax, Service tax, income tax etc etc etc. No need of more taxes. Business class are also under professional tax norms. Everyone is paying that tax.

    FYI, Technically I do a business and I am supposed to pay about 40% tax flat on business accounts and then whatevr comes to me, personal income tax again. I dont think I m obliged to pay any more shit. You really have no idea about tax system. Do a bit more research

    It is different in different months because March is annual return submission month. The financial year ends in March. So it is treated as different.
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  • Sanyam Khurana

    Member • Oct 19, 2013

    Nayan Goenka
    I dont see any reason why ₹300 is so lucrative for the government. What is the point of studying, if ultimately some day you have to pay tax because you are educated and have a job. LOL. "Welcome to India" moment this is 😛

    Maybe it will make more sense if they supply the reason behind the taxes they impose on people.
    I agree with you. This is just a stupid idea, of the professionals being taxed.
    You just study hard, get a good job and land up just being busy in paying taxes 😡

    This is ridiculous..! 👎
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  • Anand Tamariya

    Member • Oct 20, 2013

    Nobody wants to pay taxes but expects Govt. to do it's job (aka provide infrastructure, electricity, banking, SEZs, STPI, schools, hospitals etc.) - amusing!!!
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  • Nayan Goenka

    Member • Oct 20, 2013

    Anand Tamariya
    Nobody wants to pay taxes but expects Govt. to do it's job (aka provide infrastructure, electricity, banking, SEZs, STPI, schools, hospitals etc.) - amusing!!!

    We are happy to pay taxes if that money is actually used. I dont want my money to go in Gandhi famlily's Swiss Bank accounts. If we actually see change that is useful, no one has any issue in paying taxes. Government is taking money from people, on the names of development, roads etc watevr u mentioned, How many roads in your own locality you think upgraded in the past 5 years. Technically you pay road taxes every year.

    How many new Government infrastructure, public buildings etc are erected in your locality, you are paying municipal tax on it every year.

    How much debt of Indian Government is re-scalled, you are paying financial taxes of all sorts every year

    How much rise did we see in exports? We pay custom duty on each and every import.

    How much defense upgrade did the government do? You are paying tax for it every purchase you make.

    How cheap is the market? You are paying each and every tax applicable on you.

    So my friend, you think we are amusing when we dont wanna pay tax, the government doesn't deserve to collect money more from people. They have stashed everything in their swiss accounts. Even if no one in India pays tax for a year, the government has enough money to sustain the country for a decade atleast.


    Out of 100% income, a person has to pay round about 50% in 101912839123523 types of taxes the government wants to apply and the PRICE HIKE! no competition to it. So a man should not eat but contribute in scam funds. This is what you mean. And you still urge people to pay such un necessary and useless taxes like "Profession Tax". It is equal to Public funds kids collect during festivals for sweets.

    I think you got your answer pretty clearly.
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  • Anand Tamariya

    Member • Oct 20, 2013

    @#-Link-Snipped-# that's an emotional rant. If you look at it, your argument is not against paying taxes, but at its utilisation - after all, tax is the fuel which runs a country. And that's what it should be directed at - instead of saying no taxes, seek accountability.
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  • Kaustubh Katdare

    Administrator • Oct 20, 2013

    For the records sake, I never understood 'taxes'. Government gives money to people and then takes it back! 😨
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  • Harshad Italiya

    Member • Oct 20, 2013

    Kaustubh Katdare
    There's also a correlation between the salary offered to the employee and the professional tax he/she must pay. In Maharashtra, it's as follows-
    • (Salary) < 5000 pm : NIL
    • Rs. 5001 - Rs. 10,000 pm : Rs. 175 pm
    • > Rs. 10,000 pm : Rs. 200 from April to February and Rs. 300 for month of March (?)
    Don't you think professional tax is totally useless and just a government's ploy to loot the professionals? Would like to know from startup folks here what do they think about this type of taxes.
    The rate is quite similar to here in Gujarat.
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  • Nayan Goenka

    Member • Oct 21, 2013

    @#-Link-Snipped-# : This is not an emotional rant. The day you are liable to pay taxes, you will understand what I am trying to say. And if the amount we pay are actually used for development purposes, its for our own benefit. If the inflation is controlled, prices will be less. So my use of money will be less and also, I will not mind paying taxes. They are inflating the economy, and increasing taxation, leaving least possible money in people's pockets. Doesn't make sense.

    And for the record, if the money is actually used in proper way, I dont have any issue for any number of taxes they put on. We are ready to pay.
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  • Anand Tamariya

    Member • Oct 21, 2013

    Nayan Goenka
    @#-Link-Snipped-# : This is not an emotional rant. The day you are liable to pay taxes, you will understand what I am trying to say. And if the amount we pay are actually used for development purposes, its for our own benefit. If the inflation is controlled, prices will be less. So my use of money will be less and also, I will not mind paying taxes. They are inflating the economy, and increasing taxation, leaving least possible money in people's pockets. Doesn't make sense.

    And for the record, if the money is actually used in proper way, I dont have any issue for any number of taxes they put on. We are ready to pay.
    You love repeating things - don't you? And I do pay taxes and file my returns too.
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  • Saandeep Sreerambatla

    Member • Oct 28, 2013

    Moving a bit away from the topic, what is that a business has to pay 40 % of the taxes flat?
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  • rahul69

    Member • Oct 28, 2013

    Anand Tamariya
    You love repeating things - don't you? And I do pay taxes and file my returns too.
    Its strange that some countries have zero income tax. Here is the #-Link-Snipped-#.☕
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  • Anand Tamariya

    Member • Oct 28, 2013

    rahul69
    Its strange that some countries have zero income tax. Here is the #-Link-Snipped-#.☕
    What does that prove - those countries don't need money to run the govt.? If you read the complete article, every Govt. has to find a way to fund it's state machinery.
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  • Sundarc

    Member • Aug 11, 2015

    I am doing a profession and earning Income. And my tax structure extends like,
    1. Using own Vehicle- Paying Road tax
    2. Using Roads- Paying Toll tax
    3. Earning Income- Paying income tax
    4. Government need money for education - Paying education cess
    5. Buying property from the income- Paying stamp duty, registration fee
    6. Selling the property - Paying Capital gain tax
    7. Buying stocks using the income- Paying STT
    8. Selling within a year - Paying STT
    9. Selling after an year- Paying Capital gain tax
    10. Buying new house using the income- Paying municipal tax
    11. Having TV - Paying entertainment tax
    12. And also I'm the end consumer for many goods. So (Excise+customs+VAT+sales+Service+State government taxes(Like octroi)) all the above taxes I should pay.

    I think Already I gave enough from my earnings for the welfare of the society. Still I neet to pay professional Tax?😔
    Is it like a punishment for being a professional?😡
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