Maharashtra Profession Tax – Changes W.E.F. 01/04/2023

“Stay informed about Maharashtra Profession Tax changes effective from 01/04/2023. Understand the threshold, rates, and amendments in the Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975.”

Profession Tax is a state-level tax that is levied by the government on individuals who earn an income through employment, business, trade, or profession. The tax is levied as per the provisions of the respective state government’s legislation.

In Maharashtra, Profession Tax is levied under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. It is a tax that is applicable to all individuals who are engaged in any kind of profession, trade, or employment in the state of Maharashtra. The tax is collected by the respective employers from their employees and deposited with the government.

The rate of Profession Tax in Maharashtra varies depending on the income earned by an individual. The tax is levied on a monthly or yearly basis, as per the provisions of the legislation. The maximum amount of Profession Tax that can be levied in Maharashtra is Rs. 2,500 per annum.

In summary, if you are a resident of Maharashtra and earn an income through a profession, trade, or employment, then you may be liable to pay Profession Tax as per the provisions of the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

What is threshold for deduction of Profession Tax in Maharashtra ?

In Maharashtra, the threshold limit for the deduction of Profession Tax is an income of Rs. 7,500 per month. This means that if an individual’s monthly income is less than Rs. 7,500, then they are not required to pay Profession Tax. However, if an individual’s monthly income exceeds Rs. 7,500, then they are liable to pay Profession Tax as per the rates prescribed under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

It is the responsibility of the employer to deduct the Profession Tax from the employee’s salary and deposit the same with the government. If an employer fails to deduct or deposit the Profession Tax, they may be liable to pay a penalty or face legal consequences.

Amendments in Professions, Trades, Callings and Employments Act, 1975 introduced on or after April 1, 2023:-

In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in English of the Maharashtra State Tax on Professions, Trades, Callings and Employments (Amendment) Bill, 2023 (L. A. Bill No. XIII of 2023), introduced in the Maharashtra Legislative Assembly on the 20th March 2023, is hereby published under the authority of the Governor.

AS PER L. A. BILL No. XIII OF 2023 OF MAHARASHTRA GOVT DATED 20th MARCH 2023 MADE FOLLOWING AMENDEMENTS.

(1) This Act may be called the Maharashtra State Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2023.

(2) It shall come into force on the 1st April 2023

(i) in case of men, whose monthly salaries or wages,–

a) Upto 7500 – NO Profession Tax

b) >7500 but less than 10,000 – 175/- Per Month

c) >10,000  – 200/- Per Month (In Feb Month-300)

(ii) in case of women, whose monthly salaries or wages,–

a) Salary < 25,000 : No Profession Tax

b) Salary > 25,000 : 200/- Per Month (In Feb Month-300)

However, it is important to note that the state government may introduce amendments or changes to the Profession Tax from time to time, based on various factors such as economic conditions, revenue requirements, etc. As such, it is advisable to check the official website of the Maharashtra State Tax Department or consult a tax professional for the latest updates on any changes to the Profession Tax in Maharashtra.