The government has decided to make certain changes in professional tax.
The limit of tax-exemption for salaried/wage earning people has been hiked from Rs.5,000 to Rs.15,000.
According to the new norms, professional tax Rs.150 per month is to be levied on salary/wage earners, in the slab of Rs.15,000-Rs.20,000 and Rs.200 per month for more than Rs.20,000
For VAT dealers, the annual turnover threshold has raised from Rs.5 lakh to Rs.10 lakh.
Small-time contracted having annual turnover of less than 10 lakh have been dropped from the list of tax payers.
According to government sources, the revenue yield from professional tax is Rs.550 crore to Rs.600 crore per year.
Professional tax for different professionals is as follows:
|Kind of tax payers||New rates to be levied(per annum, in Rs)|
|Engineers, and other Engineering consultants (with less than five year experience)||NIL|
|Engineers, and other Engineering consultants||2500|
|Jockeys with license of turf clubs||1250|
|Owners or lessees of hotels, restaurants and bars (Less than ten lakhs)||NIL|
|Owners or lessees of hotels, restaurants and bars (Rs 10 lakh- Rs 50 lakh)||1250|
|Owners or lessees of hotels, restaurants and bars (Above Rs 50 lakh)||2500|
|Insurance agents and surveyors||2500|
|Theatres (all categories) exhibiting films||2500|