In a significant relief for salaried employees, the West Bengal government has announced a proposal to double the Profession Tax exemption limit from ₹10,000 to ₹20,000 per month.
The announcement was made during the presentation of the State Budget for 2026–27.Under the proposed changes, individuals earning up to ₹20,000 per month will be exempt from paying Profession Tax. The move is expected to benefit a large number of low- and middle-income earners across the state and increase their disposable income.
The government has also proposed raising the exemption threshold for self-employed professionals from ₹60,000 to ₹2.5 lakh in annual income. Additionally, small traders and businesses with an annual turnover of up to ₹10 lakh will be exempt from Profession Tax, compared to the previous limit of ₹5 lakh. Officials stated that the reforms aim to reduce the tax burden on workers, professionals, and small businesses while encouraging economic growth and ease of doing business. The budget further proposes complete Profession Tax exemption for Border Security Force (BSF) personnel and the decriminalisation of certain provisions under the Profession Tax law.The proposed measures have been welcomed by employees and business groups, who believe the changes will provide financial relief and support economic activity across the state.
