Have you ever glanced at your payslip and wondered what on earth professional tax is all about? It’s a mandatory deduction that you simply can’t ignore if you’re a working professional or a business owner in Maharashtra. But what exactly is it, and why do you have to pay it?
Professional tax may seem like just another financial burden, but the truth is that it plays a critical role in the state’s revenue generation. As a result, it’s important to understand its nuances and comply with the rules to avoid penalties.
Don’t worry, though – we’ve got you covered! In this article, we’ll take you through everything you need to know about professional tax in Maharashtra through FAQs (Frequently asked questions). By the time you’re done reading, you’ll be a pro at navigating the intricacies of professional tax. So, sit back, relax, and get ready to become a professional tax pro!
But before we touch the FAQs, let us first know the latest amendment to the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (in short PT Act). The PT Act has brought some relief to salaried individuals, especially women, as the new limits for professional tax have been revised.
Enhanced Professional Tax Limits in Maharashtra: A comparison with the previous Limits
| Gender | Salary Range | Previous Limit for Professional Tax | New Limit for Professional Tax |
| Female | Up to Rs. 10,000 | Rs. Nil | Rs. Nil |
| Female | Rs. 10,001 to Rs. 25,000 | Rs. 2500 per annum | Rs. Nil |
| Female | Rs 25,001 & above | Rs. 2500 per annum | Rs. 2500 per annum |
| Male | Up to Rs. 7,500 | Rs. Nil | Rs. Nil |
| Male | Rs. 7,501 to Rs. 10,000 | Rs. 175 per month | Rs. 175 per month |
| Male | Rs. 10,001 & above | Rs. 2500 per annum | Rs. 2500 per annum |
It’s important to note that this new amendment will come into effect from April 1, 2023. It is advisable for all professionals falling under these categories to be aware of the new changes in order to avoid any penalties for non-compliance.
Alright, let’s dive into the FAQs and handle them like a pro. After you finish reading, you’ll be a professional tax ninja, and your payslip won’t stand a chance!
Frequently Asked Questions
Ques 1: Who is liable to pay Professional Tax in Maharashtra?
Answer: Any individual or entity engaged in a profession, trade, calling or employment within the state of Maharashtra is required to pay professional tax. This includes not only individuals, but also Hindu Undivided Families, firms, Company, Corporations, Societies, clubs, and associations operating within the state.
Ques 2: Which individuals are exempted from paying Professional Tax?
Answer: There are several categories of individuals who do not need to pay Professional Tax which are as follows: –
- Members of the Armed Forces, governed by the Army, Air Force, Navy Act
- Individuals suffering from mental or physical disabilities, including blindness or deafness
- Parents or guardians of a child suffering from physical disability
- Charitable hospitals located in areas below the taluk level
- Badli workers in the textile Industry
- Individuals running educational institutes
- Foreign individuals employed by the state
- Senior citizens above the age of 65
- Women solely engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana scheme.
Ques 3: Is professional tax applicable only to individuals engaged in professions or is it applicable to others as well?
Answer: Professional tax is not restricted to individuals engaged in professions only. It is applicable to anyone who earns an income from any form of employment, including employers, freelancers, and professionals, among others, subject to certain income thresholds and exemptions provided by the respective state governments.
Ques 4: What is the maximum amount of professional tax that can be imposed in India currently?
Answer: As per the current regulations, the maximum amount of professional tax that can be imposed in India is limited to Rs. 2500/- per year. This means that regardless of the state in which an individual is employed or engaged in any form of employment, they cannot be charged more than Rs. 2500/- per year as professional tax.
Ques 5: – What are the types of registration for professional tax in Maharashtra?
Answer: – There are 2 different types of registration available for professional tax payment in Maharashtra namely PTEC and PTRC which are as follows: –
1. PTEC:- It stands for Profession Tax Enrolment Certificate, which is a certificate needs to be obtained by an employer to pay their own professional tax as well as professional practitioners like CA, doctors, etc. Any person who is engaged in any profession (business or service) excluding Partnership firm or HUF is required to get registered and pay a professional tax of Rs. 2,500/- p.a. every year after the incorporation or commencement of business. This requirement applies to all limited liability partnerships (LLPs), businesses, and companies in the state.
2. PTRC:- It stands for Profession Tax Registration Certificate, which is a certificate obtained by an employer to deduct and deposit professional tax from employees salary whose monthly salary is above the threshold limit discussed above.
Ques 6: -What is the procedure for registration under PTRC/PTEC Acts in Maharashtra?
Answer:- The following steps need to be followed for registration under PTRC/PTEC Acts in Maharashtra:
1. Log on to the website www.mahagst.gov.in
2. Click on “e-Registration” on the home page
3. Click on the option “New Registration under various Acts” then “Instructions” page will appear
4. Detailed guidelines regarding the application process flow and the list of required documents are provided in the instruction sheet.
5. Click “next” and then “PAN/TAN Validation” information page will appear.
6. After that “Temporary Profile creation” page will appear to create a temporary profile by giving valid PAN, e-mail Id, and mobile number.
7. After successfully creating a temporary profile, the applicant will log in by using credentials as a temporary profile.
8. After successful login, the applicant will select “Existing Users” option from menu option.
9. After that “Act selection” page will appear for which type of Act registration is required. In this page applicant can select multiple Acts for registration in a single application.
10. Select PTRC/PTEC Act from the check boxes provided in the field “Acts for Registration”.
11. E-application (Form I/II) under Profession Act will open. Information in the form should be completely filled either by entering in the relevant fields or selecting from the drop-down lists.
12. The online application form will not be accepted if it is not complete in all respects and the required documents are not submitted along with the application.
13. The signatory, manager/authorized person(s) are required to sign digitally or by uploading the signature at the relevant place/places while filing the application and submit the relevant documents.
14. After filing the application Form, click on the “Submit” button. After successful submission of Form, an acknowledgment bearing “Application Reference Number” will be available for download on the confirmation page.
15. The submitted application form which will be communicated via e-mail as attached PDF Format.
16. The MSTD portal shall carry out preliminary verification/validation before submission of the application form
Ques7: – What is the process of grant of Registration of Certificate?
Answer: – The process of getting a Registration Certificate involves submitting a complete and correct application with all the necessary documents. Once the Registering Authority verifies and approves the application, they will generate a TIN (Taxpayer Identification Number) and consider the date of application as the effective date of the RC. The RC will be sent via email and post and will be available for download with a digital signature. There is no need for the applicant to visit MSTD offices to obtain the certificate.
Ques 8: – How to Pay Professional Tax Online in Maharashtra?
Answer: Here are the steps to pay Maharashtra professional tax online in a simplified manner:
1. Visit the Maharashtra Government’s GST Department website i.e www.mahagst.gov.in
2. Click on the ‘e-Payments’ option.
3. Select the option which is applicable to your status of professional tax payment.
4. Enter your TIN/PAN/TAN number along with the captcha shown on the screen.
5. Select the Act under which you want to make the payment. For professional tax, choose either PTRC Act or PTEC Act.
6. Enter the other required details such as the financial year, period for which professional tax needs to be paid, location, amount as per the slab rate, and mobile number.
7. Click on the ‘Proceed to Payment’ option.
8. Choose your preferred payment method from credit/debit card or net banking.
9. Make the payment successfully.
10. Download the acknowledgement receipt generated for future reference.
Ques 9: – What are the due dates for PTEC and PTRC Payment after obtaining TIN?
Answer: –
For PTEC:
If the PTEC TIN holder has any previous year’s liability shown in the certificate, it must be paid immediately.
The current year’s tax liability can be paid up to June 30th of that financial year if the enrollment is taken before May 31st. If the enrollment is taken after that, the liability must be paid within 30 days from the date of enrollment.
For the future financial year, the tax liability must be paid up to June 30th of every financial year.
For PTRC:
The due date for making payment is the last date of the month to which the return relates.
Ques 10: -What is the process of changing the address of place of activity in your registration certificate?
Answer: – To make changes to their registration, one can apply for an amendment by logging in to www.mahagst.gov.in and navigating to the “Registration” section. From there, they can select the “Amendment” option and choose to make changes under a) email, mobile or b) other methods.
Ques 11: – What is the process to apply for cancellation?
Answer: To apply for cancellation, the user can go to the official website i.e www.mahagst.gov.in and log in. Then, click on the Registration tab and select Cancellation option.
Point to be Noted
The tax regulations authorities stipulate various penalties and fees for non-compliance, including penalties for late application for registration or enrolment, penalties for false information in any application for registration or enrolment, and late fees for late filing of returns by employers. There are also penalties for non-payment or late payment of tax and interest on late payment of tax, which increase over time. However, the state government may exempt the whole or part of any late fee payable by classes of employers under certain prescribed conditions.
The above FAQs are few of the ones that my clients asked me or I could think of, However, if you have any further queries related to PT, Please feel free to share them in the comments section below, I would be happy to incorporate those questions in the main article and solve your query. Happy Learning!
Author Bio
I have changed address through amendments
How can i download amended PTEC certificate?