Income Tax and Professional Tax are two distinct types of taxes in India, differing in purpose, applicability, and collection methods. The main difference between income tax and professional tax is that while income tax is paid to the central government, professional tax is paid to the state government.
This is all about the difference between income tax and professional tax. Hope this helps!
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What are the Difference Between Professional Tax and Income Tax?
The points of differences are as follows,| Income Tax | Professional Tax |
| A tax levied by the Central Government on an individual\'s income earned in a financial year. | A state-level tax imposed on individuals earning income through business, or profession. |
| Applicable to all individuals, HUFs, companies, and entities earning taxable income, including salaries, business profits, and investments. | Applicable to salaried individuals, professionals (lawyers, doctors, etc.), and business owners |
| Calculated based on income slabs defined by the Central Government, with varying rates (e.g., 5%, 20%, 30%). | Fixed and nominal capped at Rs. 2,500 per year. |
| Used for national development projects, defense, and welfare schemes | Utilised for state-level initiatives and welfare programs |
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What is the Difference Between Income Tax And Professional Tax?
ravi
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11 months
2024-12-30T09:14:08+00:00 2024-12-30T09:14:09+00:00Comment
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