The State of Gujarat has notified the revised rate of professional tax.
Individuals, Hindu undivided families, and all associations/businesses/companies are liable to pay professional tax. However, the maximum amount that can be levied per person is Rs. 2500 in each financial year. Additionally, any professional tax paid is deducted from the total income tax liability of the payee.
The persons employed with the State Government, Central Government, Panchayats, Public Sector Undertakings of the State and the Central Government, and Grant-in-aids institutions, whose monthly salaries or wages are (i) Up to 12,000/ will pay zero tax and the persons whose salary or wages are more than 12,000/- will pay Rs. 200.
Further, Salary and Wage earners other than those mentioned in sub-entry(A), whose monthly salaries or wages are (i) Up to 12,000/- will pay zero tax and those who are with more than 12,000/- will pay Rs. 200/-.
The notification applicable from 1st April 2022 has stated that “Where any salary or wages are payable according to any period other than a month, the monthly salary or wages shall, for the purpose of this entry, be reckoned on the basis of the actual amount of salary or wages paid or payable for a month. Where a person ceases to be a salary or wages earner before the end of any month, his liability to pay the tax for that month shall be proportionately reduced.”
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