Profession tax may be hiked from Rs.2,500 to Rs.7,500
All professionals, whether salaried or self-employed could have to shell out a higher profession tax every year now.
Profession tax is levied by some state governments under Article 276 of the constitution. It is a slab based tax, depending on income, and presently capped at Rs.2,500 per annum since 1998. The Cente is now mulling a proposal from the State Govts to up this to Rs.7,500 per annum, a three fold increase.
This means that the deduction available to such professionals under the Income Tax Act will also increase. Many states like Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Tamil Nadu and Gujarat are levying this tax, though Delhi does not fall in this category. I often find it unfair that Delhi manages to get the best of everything, like no profession tax, or cheaper fuel for example !! 
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