General FAQ - Professional Tax
Professional Tax is the tax assessment collected by the different State Governments of India on salaried people working in government or non-government elements including CAs, Lawyers, Doctors, and so on or complete some type of business, are required to pay this expert expense. Professional Tax is forced at the state level in India. Diverse states have distinctive rates and strategies for accumulation. It isn’t forced in all states. The states which force Professional Tax are Andhra Pradesh, Assam, Chattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal. Professional tax in india is deducted from the compensation of the salaried employees by the businesses and same is kept with the State Government.
Professional Tax registration is required within 30 days of employing staff in a business or, on account of experts, 30 days from the beginning of the training. This duty should be deducted from the compensation or wages paid; the sum changes by state and sum, yet is topped at Rs. 2500 for every annum.
The frequency of return filing depends on the state you’re in. For example, in Maharashtra, returns can be filed annually if the liability is under Rs. 5000, quarterly if the liability is under Rs. 20,000 and monthly if it is above Rs. 20,000. However, in West Bengal, returns need only be filed once every year. This is the approach, in fact, many states are moving toward now.
A penalty of 10% of the amount owed can be imposed in Maharashtra in case of delayed payment of professional tax in india. A delay in obtaining the Enrollment Certificate will be charged at Rs. 2 per day.
Basically Professional tax slabs will formulated and implemented by State Govt. Hence it varies between states. The different slabs implemented by different states are as follows:
In Maharashtra, profession tax is governed by the Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975. All employees and professionals with a monthly salary of over Rs. 7500 must pay profession tax. Those with a salary of Rs. 7500 to Rs. 10,000 must pay Rs. 175 per month, while those with a higher salary must pay Rs. 200 a month (Rs. 300 in February). Payment of the profession tax that is collected can now be made online.
Profession tax is governed by the Town Panchayats, Municipalities and Municipal Corporation Rules, 1988. The slab rates are as follows: All employees and professionals with a monthly salary of over Rs. 3500 must pay profession tax, starting at just Rs. 16 per month and going up to Rs. 182 per month for those earning over Rs. 12,501.
Profession tax is governed by the Karnataka Tax on Professions, Trade, Callings and Employment Act, 1976. The slab rates are much simpler here, as there is only one rate. If you earn over Rs. 15,000 a month, you must pay Rs. 200 a month as profession tax. If you do not earn Rs. 15,000 a month, you don’t pay it at all.
Profession tax is governed by the West Bengal Tax on Professions, Trade, Callings and Employment Act, 1979. Slab rates in West Bengal start at Rs. 90 a month, for those earning a salary of over Rs. 8500 per month. The highest rate, of Rs. 200, only kicks in for those earning over Rs. 40,000 per month.
Profession tax is governed by the Andhra Pradesh Tax on Professions, Trade, Callings and Employment Act, 1987. Only those earning Rs. 15,000 and over per month need pay profession tax, which starts at Rs. 150, and is raised to Rs. 200 per month for those earning over Rs. 20,000 per month.
Profession tax is governed by the Gujarat Panchayats, Municipalities, Municipal Corporations and State Tax on Professions, Traders, Callings & Employment Act, 1976. The tax starts at Rs. 80 per month for those earning over Rs. 6,000 per month, going up to Rs. 150 per month for those earning over Rs. 9000 and Rs. 200 per month for those earning over Rs. 12,000.