Local Government Finance in Kerala - Tax Revenue of Local Governments - Profession Tax

Profession Tax

Profession tax is collected from all companies and individuals transacting business or engaged in a profession for at least 60 days in a half-year. They are bound to pay the tax at such rates as are fixed by the concerned local government subject to the maximum rates prescribed by the Government. The rates are as follows:-

Table:Rates of Profession Tax in Grama Panchayats & Municipalities

Sl No Half-yearly income


Maximum half-yearly tax


I Between 12,000-17,999 120
II Between 18000-29,999 180
III Between 30000-44,999 300
IV Between 45000-59,999 450
IV Between 60000-74,999 600
VI Between 75000-99,999 750
VII Between 1 lakh -124,999 1000
VIII Between 1.25 lakh onwards 1250

Profession tax constitutes the second largest source of own income for the Grama Panchayats and has the fifth position for the urban local bodies.

Read more about this topic:  Local Government Finance In Kerala, Tax Revenue of Local Governments

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