Income limit for professional tax up in Himachal

The Himachal Pradesh government has marginally raised the annual income limit for the payment of professional tax to Rs 1,08,000 from 1,02,000 to cover all state government class IV employees.

This was announced to reporters here by state Chief Minister Virbhadra Singh yesterday.

"The new limit of about Rs 9,000 per month will come into effect from July 1 this year. It is already higher than the annual income tax exemption limit of Rs 1,02,000," Singh said.

"Professionals must file tax returns as there is a provision for penal action against defaulters who fail to pay the tax," he added.

In April this year Himachal became the fourth state in the country after Maharashtra, West Bengal and Andhara Pradesh to impose 'professional tax' of upto Rs 200 per month to cover professionals of several categories.

It will cover ministers, legislators, lawyers, journalists, brokers, estate, insurance agents, company directors, doctors, chartered accountancts, contractors besides other entrepreneurs.

The state government is facing opposition from various quarters, particularly lawyers who are objecting the imposition of professional tax.