Currently, this deduction is around 200/- Rs under the professional tax bracket every month when you see your pay slip.
There are varying levels of professional taxes, with some states not allowing deductions from the tax.
Here is more information on advance tax payments: What are they and how do they work?
Article 276 of the Indian Constitution stipulates that the profession tax on occupations, trades, callings and jobs shall be assessed and collected under this Act. The State shall collect government taxes from all persons engaged in any profession, company, call, or job, or who fall into the classes mentioned in the second column of the Schedule, at the rate specified in the third column. In light of the fact that section 23 of the schedule applies only to those groups of persons identified by the State Government via notification of time.
What is the professional tax?
It is a tax levied and collected by Indian state governments that is indirect. Those who earn wage incomes or are professional practitioners, such as accountants, accountants, lawyers, physicians, etc., will be required to pay this professional tax. There are varying collection rates and processes in different states. Every month, the Indian Government collects professional tax certificate
Punjab, Uttar Pradesh, Karnataka, Bihar, western Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, and Gujarat are the states that enforce this tax. Businesses, workers, traders and others who take on various jobs are all subject to this tax.
It is mandatory to pay professional tax in Gujarat quarterly. If the company consists of fewer than 20 employees, it must do so within fifteen days of the end of the month. As a result, a company or company may be required to pay a quarterly professional tax if the number of employees reaches 20. Again, it must be paid within 15 days of the previous quarter’s end.
- Within 30 days of an employee’s appointment, the application should be submitted to their tax offices.
- From the date of appointment, all workers are expected to file within 30 days.
- Registration applications must be filed separately for each authority in each jurisdiction if other laws and regulations apply to the company owner.
For registration, the following documents are required
- The incorporation certificate
- Verification of address
- Keeping track of accounts
- Payslips and salary information
- Work is being done by a number of employees.
India profession tax slabs
During the year, every individual with a professional tax registration pays a certain amount based on their monthly salary. Professional tax is typically paid by employers in trade and business rather than the taxpayers themselves.
- Amount of the taxpayer’s monthly income
- Amount payable (per month) for professional taxes
- Monthly Income of the TaxPayer
| Below Rs. 5999 | Rs. 6000 to Rs. 8999 | Rs. 9000 to Rs. 11999 | Rs 12000 and above |
| NIL | Rs. 80 | Rs. 150 | Rs. 200 |
Fees for late payments
The following is applicable at the moment:
- Tax must be paid by the 15th of the following month if you have fewer than 20 employees.
- If you have more than 20 workers, you must pay the tax before the 15th of the month following the end of each quarter.
The quarterly professional tax payment due dates are as follows:
For the April-June quarter, the 15th of July is the deadline.
October 15th (for July to September quarter),
– 15th January (for the October-December quarter)
April 15th (January-March quarter).
For unpaid taxes measured daily, Gujarat charges a penalty of 18% per year for late payments.
Professional Tax – FAQs
Is there a penalty for PT registration delays?
Moreover, if the employer fails to obtain the Certificate of Enrolment on time, a penalty of INR 1,000 will be levied. Additionally, any pending tax that has accumulated since the beginning of the business must be paid.
In India, does Professional Tax (PT) have to be paid?
Some states pay the tax, while others do not. However, states that pay the tax are required to do so.
Can you tell me how much the Professional Tax (PT) is in India?
Each state in India has its own tax slab. However, the annual payment can’t exceed INR 2500.
Read More :
- Professionals Can Pay Their Taxes in Online ?
- How does the professional taxes registration process work?
- The Penalties For Not Paying Tax On Time Professional Tax