Total amount of taxes by state on professions, trades, etc. not to exceed Rs. 2500

Q.  The total amount of taxes levied by state like taxes on professions, trades, etc. should not exceed
- Published on 04 Aug 16

a. Rs. 2500 annually
b. Rs. 5000 annually
c. Rs. 250 annually
d. Rs. 250 monthly

ANSWER: Rs. 2500 annually
 
  • A state legislature can impose taxes on professions, trades, callings and employments.
  • But, the total amount of such taxes payable by any person should not exceed Rs. 2,500 per annum.
  • Originally, this limit was only Rs 250 per annum. The 60th Amendment Act of 1988 raised it to Rs. 2,500 per annum.

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