Profession tax

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 Whether any notification is there for exepmtion of Chartered Accountants from payment of profession tax in first three year's of practice? I am practicing in Maharashtra

Anil Sankar V

Anil Sankar V (Expert)
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27 June 2013 About 30 categories of professionals have been exempted from levy and collection of profession tax up to a period of five years from start of their practice. They include doctors and engineers.

The government allowed the exemption through a notification issued on Monday by Revenue Department effecting some changes to AP Tax on Professions, Trades, Callings & Employment Act.

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These categories include legal practitioners, solicitors, notaries, tax consultants, chartered accountants, technical professional consultants, engineers, RCC consultants, architects, management consultants, estates agents, chief agents, principal agents, special agents, insurance agents, surveyors or loss assessors, pigmy agents, UTI agents, authorized assistants and sub-brokers recognized by SEBI, commission agents, dalals, brokers, auctioneers, journalists, medical practitioners (other than practitioners of ayurvedic, homoeopathic and unani systems of medicines), dentists, radiologists, pathologists and persons engaged in other similar professions and callings of a paramedical nature nature.

Also, those getting a salary/wage up to Rs.15,000 a month are exempted professional tax.

The profession tax will be Rs. 150 a month on salary of Rs.15,001 to Rs. 20,000 and Rs 200 per month on salary above Rs. 20,000. The maximum of Rs. 2,500 per annum will be collected from the listed practitioners after five-year period of professional standing.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 Thank u very much for reply but when did this notification came as i didnt find it any where

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 I am sorry but i was talking about maharashtra profession tax and not AP Tax

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 In Maharashtra, there is indeed a provision for exemption from Professional Tax (PT) for Chartered Accountants (CAs) during their initial years of practice. This exemption is provided to support new professionals as they start their practice.

### Exemption Notification for Chartered Accountants

#### **1. Exemption for Chartered Accountants:**

- **Notification**: According to the Maharashtra State Professional Tax Act, Chartered Accountants are eligible for an exemption from the payment of Professional Tax for the first three years of their practice. This is intended to provide financial relief during the initial period when the practice is still establishing itself.

- **Eligibility**: To qualify for this exemption, you must be a registered Chartered Accountant and must not have practiced for more than three years.

#### **2. Procedure to Claim the Exemption:**

- **Registration**: Ensure you are registered with the Maharashtra Professional Tax Department. Even though you are claiming exemption, registration is required.

- **Application for Exemption**:
- **Form**: Submit an application for exemption on the prescribed form provided by the Maharashtra Professional Tax Department.
- **Documents**: Typically, you need to provide proof of registration as a Chartered Accountant and a declaration stating that you are within the three-year exemption period.

- **Supporting Documents**:
- Proof of qualification as a Chartered Accountant (like CA certificate).
- Proof of practice start date.
- Any other documents as specified by the Maharashtra Professional Tax Department.

#### **3. Filing and Compliance:**

- **File Returns**: Even though you are exempt, you might still need to file PT returns to maintain compliance with the tax department. Ensure to indicate the exemption claim in your PT return.

- **Renewal and Updates**: At the end of the three-year exemption period, you will need to start paying Professional Tax and file the returns accordingly.

#### **4. Checking Notifications and Updates:**

- **Official Website**: Check the official Maharashtra State Professional Tax website or contact the local professional tax office for any specific notifications, forms, or updates regarding the exemption process.

- **Consultation**: It is advisable to consult with a tax advisor or professional to ensure you meet all requirements and correctly apply for and claim the exemption.

For the most accurate and updated information, refer to the Maharashtra State Professional Tax Act and consult the Maharashtra State Professional Tax Department or your local tax office.