Professional TAX

Professional taxis the tax by the state governments in India . Anyone earning an income from salary or anyone prac ticing a profession such as chartered accountant, lawyer, do ctor etc. are required to pay this professional tax. Different st ates have different rates and methods of collection. In India , professional tax is imposed at the state level. However, not all sta tes impose this tax. The states which impose professional tax are Karnataka , West Bengal , Andhra Pradesh , Telangana , Maharashtra , Tamil Nadu , Gujarat ,Assam , Chhattisgarh , Kerala , Meghalaya , Odisha , Tri pura , Madhya Pradesh , and Sikkim . Business owners, working individuals, merchants and people carrying out vari ous occupations comes under the purview of this tax. Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermin ed slabs. It is also payable by members of staff emplo yed in private companies. It is deduced by the employer ev ery month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment. Applicability of Professional Tax as per the Constitution of India: Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act. Every person engaged in any profession, trade, call ing or employment and falling under one or the other of th e classes mentioned in the second column of the Schedule shal l be liable to pay to the State Government tax at the rate mention ed against the class of such persons in the third column of the sa id Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time. Employer is required to registered himself with municipality or district panchayat for professional tax. He has to get separate registration for different p laces. However he can apply for consolidated return for different pla ces in form no. 5 CC. If he fails to get himself registered, he is liable for penalty of `.20 per day for the days he remains unregistered for pr ofessional tax number in Gujarat. MONTHLY SALARY MONTHLY SALARY MONTHLY SALARY MONTHLY SALARY AMOUNT AMOUNT AMOUNT AMOUNT PAYBLE PAYBLEPAYBLE PAYBLE IN IN IN IN GUJRAT GUJRATGUJRAT GUJRAT Less than ` 5999 NIL `.6000 to ` 8999. ` 80 Per Month. `.9000 to ` 11999. ` 150 Per Month. `.12000 & Above ` 200 Per Month. Professional Tax In Gujarat is governed by the Gujar at Panchayat , Municipalities , Muncipal Corporation & State Tax on Professional Traders , Calling & Employment act 1976. If less than 20 or less 20 Employees , than Due date for payment of Professional Tax is 15th day from the end of quarter . Month/Quarter Due Date For Payment Of Professinal Tax April –June 15 th of July July – Sep 15th of Oct Oct – Dec 15th of Jan Jan – March 15 th of Mar If More than 20 Employees , than Due date for payment of Professional Tax is 15th day from the end of Month . Month/Quarter Due Date For Payment Of Professinal Tax April 15th of May May 15th of Jun June 15th of Jul July 15th of Aug August 15th of Sep September 15th of Oct October 15th of Nov November 15th of Dec December 15th of Jan January 15th of Feb February 15th of Mar March 15th of Apr If Empolyer fail to pay Professional tax than he liable to pay Interest @ 18 % P.A With Penalties. If less than 20 or less 20 Employees , than Due date for filling of Professional Tax Return is 15 th day from the end of Previous Year in Form No.5AA Example For F.Y 2014-15 The Professional Tax return Due Date is 15 th Of April -2015 If More than 20 Employees , than Due date for filling of Professional Return Tax is 15th day from the end of Month in form No.5 ,However , H e can apply for annual return in form No.5B.