Professional tax may shoot up by Rs 7,500
NEW DELHI: Doctors, lawyers and other professionals β both salaried
and self-employed β may now have to pay higher professional tax.
Acceding a longpending demand of the state governments, the Centre has
decided to raise the ceiling on professional tax from Rs 2,500 to Rs
7,500 per annum . The Union Cabinet is expected to take up the
proposal on Thursday.
Professional tax is levied by state governments or local bodies on
professions, trades, callings and employments . The power to levy the
tax flows from the Article 276 of the constitution that also puts a
cap on the amount of tax.
The Centre will now amend the Article 276 of the Constitution to raise
the limit. Though, Delhi does not impose this tax, several other
states like Karnataka, Maharashtra , West Bengal, Andhra Pradesh,
Tamil Nadu and Gujarat do so.
The limit was last fixed in 1998 at Rs 2,500 per annum.
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