Select Page

Professional Tax

PROFESSIONAL TAX

DESCRIPTION

Professional tax is the tax imposed by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax.

LEVY OF TAX-ENROLLED PERSONS - PTE

Every person residing in Maharashtra engaged in any profession, trade, calling or employment is liable and has to obtain a Certificate of Enrolment from the Profession Tax Authority within 30 days from date of liability. Enrolled person is require to pay his Tax liability Yearly on or before 30th June every year.

TAX ON EMPLOYEES​​ ​​ REGISTRATION - PTR

Salaried persons are also liable to profession tax but their tax is to be deducted and paid by employer. The slab rates applicable to them are as per entry 1 in the given Schedule.

Salary Slab

Amount of Professional Tax

Salary Upto Rs. 7,500

Nil

From ​​​​ Rs. 7,501 to 10,000

Rs. 175 Per Month

Above Rs. 10,000

Rs. 200 per month except in the month of February

( In February Rs. 300)

RESPONSIBILITY OF DEDUCTION

The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.

For this purpose the employer should obtain the Registration Certificate from Department within 30 days from date of his liability. There are also provisions for non deduction of tax, when an employee himself is enrolled & paying taxes, as provided under Section 4 of Profession Tax Act.

E-PAYMENT

Optional facility for E-payment of tax was made available from 1st January, 2012.From 1st July, 2012 every PTRC holder shall pay its all dues under the said Act electronically.

The payment is to be made in MTR-6 Challan by selecting Form ID-III-B in the challan.

RETURNS AND PAYMENT OF TAXES ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ 

Liability to​​ E FILE​​ return and payment of tax for employer

Tax Liability

Periodicity​​ 

Months of salary to be covered

Due Date

Less than Rs. 50,000/- in previous year.

Annual

March of the previous year and April to February of the current year.

31st March.

Rs. 50,000/- or more in previous year.

Monthly​​ 

Salary of previous month.

End of the month for which return is filed.

In case of first year of registration.

Monthly​​ 

Salary of previous month.

End of the month for which return is filed.

PENALTIES AND INTEREST

PENALTIES​​ 

AMOUNT

For “late application” for enrolment/registration

Rs. 5 for each day of delay in case of an employer,

Rs. 2 for each day of delay in case of any person.

For​​ “false information in any application”

3 times the tax payable under the Act

for “late filing of returns”

Rs. 1,000/- per return before filing of late return

for “Non-payment or late payment of tax”

Penalty equal to 10% of the tax due

INTEREST

AMOUNT

on late payment of tax

1.25% p.m.

on refund of excess payment of tax

@ 6% p.a. for maximum 18 months.

EXEMPTIONS

Section 27A provides for exemptions from payment of profession tax.

Sr No

Some important exemptions

1

Person suffering from permanent physical disability/blindness.

2

Mentally retarded person and Parents or Guardian of such person.

3

Parents or Guardian of a child suffering from a physical disability.

4

Badli workers in Textile Industry.

5

Persons who have completed the age of 65 years.