Professional Tax is levied by all state governments as a tax on profession, trade, calling or employment. The states levy this tax by virtue of constitutional powers under article 276 of the constitution of India. In India it was first introduced in the year 1949 at a rate of Rs. 250 which is 2500 now for each year.
The state governments has been asking parliament to raise the limit of 2500 to Rs. 7500 so that the professional tax becomes a source of major revenue for the states. The professional tax is also levied on slab basis as income. professional Tax Registration in Maharashtra
The professional tax in case of employment is required to be deducted by the employer while making payment of salary at the rate prevalent in the state in which employee is serving. The rate of professional tax is different from state to state.
The state governments implement collection of professional tax differently. Some collects through their sales tax department, some have separate department, some collects through Municipal Corporation while some collects through panchayat. All the assesse of professional tax need to get registered with professional tax department, collect applicable taxes and deposit the same within time and file professional tax return.
Professional Tax Registration @ Rs. 4000/- in Mumbai
Professional Tax in Maharashtra: is levied under Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. It is levied on Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association of Persons, Corporation or any other corporate body in Maharashtra.
Professional Tax in Maharashtra on Individuals: Every person residing in Maharashtra engaged in any profession, trade, calling or employment is liable and has to obtain a Certificate of Enrollment from the Profession Tax Authority. Once this certificate is obtained, the person can discharge their individual tax liability for five years by paying lump sum amount equal to the amount of Profession Tax for four years in advance, getting relief for one year’s payment. However senior citizen above 65 years age and handicap persons having 40% disability or parent of physically disabled or mentally retarded child is exempted.
Professional Tax in Maharashtra for Organisations: An employer organization is required to get registered under the Profession Tax Act and obtain a Registration Certificate under which the payment in respect of taxes deducted from employees’ salaries can be made. Also as a firm, the organization is required to obtain Enrollment Certificate and pay Profession tax on its behalf.
Penalty in Maharashtra on non-compliance of Professional Tax Payment: the penalty for Delays in obtaining Enrollment or Registration Certificate is penalized at the rate of Rs. 2/- (Rupees Two) per Day. In case a false information regarding enrollment is provided then the Penalty is 3 times of tax amount. The interest for non-payment / delayed payment of profession tax is 1.25% per month and the Maharashtra state authority can also impose a penalty of 10% of the amount of tax not paid/short paid/delayed.
Professional Tax Applicability
|States Imposing PT||States Not Imposing PT|
|1. Andhra Pradesh||1. Arunachal Pradesh|
|2. Assam||2. Delhi|
|3. Bihar||3. Goa|
|4. Chhattisgarh||4. Haryana|
|5. Gujarat||5. Himachal Pradesh|
|6. Karnataka||6. Jammu & Kashmir|
|7. Kerala||7. Jharkhand|
|8. Madhya Pradesh||8. Nagaland|
|9. Maharashtra||9. Punjab|
|10. Manipur||10. Rajasthan|
|11. Meghalaya||11. Sikkim|
|12. Mizoram||12. Uttar Pradesh|
|13. Orissa||13. Uttaranchal|
|14. Puducherry||14. Andaman & Nicobar|
|15. Tamil Nadu||15. Chandigarh|
|16. Tripura||16. Daman & Diu|
|17. West Bengal||17. Dadra & Nagar Haveli|