Legislative Authority
Article 276 of the Constitution of India authorizes the State Legislatures to levy taxes on professions, trades, callings and employments in their states. Initially, the article had stipulated Two Hundred and Fifty rupees per annum as the maximum limit of taxes leviable by a state. However, vide Sixtieth Amendment in the Constitution in 1988, this limit has been enhanced to Two Thousand and Five Hundred rupees per annum as the maximum amount of taxes payable by any one person to a State or to any one municipality, district board, local board or other local authority in the State.
State Specific Laws
In exercise of the powers vested under Article 276 of the Constitution, certain states have enacted laws to levy tax on Professions, Trades, Callings and Employments. The Acts governing tax on Professions, Trades, Callings and Employments in the respective states are listed herein below:
Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987
Assam Professions, Trade Callings and Employments Taxation Act, 1947
Chhattisgarh Professional Tax Act, 1995
Gujarat State Tax on Profession, Trades, Callings and Employments Act, 1976
Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976
Madhya Pradesh Professional Tax Act, 1995
Maharashtra State Tax on Professions, Trade Callings and Employments Act, 1975
Orissa State Tax on Professions and Trades, Callings and Employments Act, 2000
Punjab Finance Act, 1977 regulating Tax on Professions, Trades, Callings and Employments in Punjab
Rajasthan Tax on Professions, Trades, Callings and Employment Act, 2000
Sikkim Tax on Professions, Trades, Callings & Employments Act, 2006
Tamil Nadu Tax on Professions, Trades Callings, and Employment's Act, 1992
West Bengal State Tax on Professions and Trades, Callings and Employments Act, 1979
