Profession Tax is a State level Tax in India on Professions, Trades, Callings and Employments.
The following Indian states levy Profession Tax – West Bengal, Karnataka, Maharashtra, Andhra Pradesh, Gujarat, Tamilnadu and Madhya Pradesh.
Profession Tax in Maharashtra
In Maharashtra (Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975), Profession Tax is applicable both on Individuals & Organizations (Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association Of Persons, Corporation or any other corporate body in Maharashtra per the provisions of the Maharashtra Professional Tax Act of 1975.
Profession Tax For Individuals in Maharashtra
Every person residing in Maharashtra engaged in any profession, trade, calling or employment is liable and has to obtain a Certificate of Enrolment from the Profession Tax Authority.
Once this certificate is obtained, the person can discharge their individual tax liability for five years by paying lumpsum amount equal to the amount of Profession Tax for four years in advance, getting relief for one year’s payment.
Exempted Individuals in Maharashtra
The following persons are exempted from the provisions of the Profession Tax Act in Maharashtra :
Senior Citizen above 65 years age.
Handicapped Person with more than 40 % disability or parent of a physically disabled or mentally retarded child.
Profession Tax For Organizations:-
An employer organization is required to get registered under the Profession Tax Act and obtain a Registration Certificateunder which the payment in respect of taxes deducted from employees salaries can be made.
Also as a firm, the organization is required to obtain Enrolment Certificate and pay Profession tax on it’s behalf.
New profession Tax Rates after Maharashtra Government Budget and Provisions
Periodicity of Returns
For employers holding Registration Certificate, the period of returns to be filed on basis of annual tax liability amounts are as follows :
- Annual Profession Tax Liability < Rs. 5000 – Annual Return.
- Annual Profession Tax Liability >= Rs. 5000 but < Rs. 20000 – Quarterly Returns.
- Annual Profession Tax Liability >= Rs. 20000 – Monthly Returns.
Returns are required to be filed on or before the last date of the month to which the return relates.
It should contain details of salaries paid and the amount of tax deducted in respect of the month immediately preceding the month to which the return relates.
Due dates for payment of Profession Tax and for filing the returns in Maharashtra:-
For the persons holding Enrolment Certificate – 30th June.
For any delay in the same, interest @ 1.25% per month will be charged.
Bank payment challans to be received by all Enrolment Certificate holders by mid June.
Profession Tax Penalties
- Delays in obtaining Enrolment or Registration Certificate – Penalty of Rs. 2/= (Rupees Two) per Day.
- Providing false information regarding enrolment – Penalty of 3 times tax amount.
- Non-payment of profession tax – Penalty equal to 10% of the amount of tax can be imposed.
Schedule of rates of tax on professions, trades, callings and employments after Budget:
Although new rates been passed in budget but they shall come into force on such date as the state Government may, by notification in the Official Gazette, appoint. ((Government of Maharashtra appointed the 1st July 2009 to be the date from which new profession rates will come into force)
| Sr. No. | Class of Persons | Rate of Tax |
| 1. | 2. | 3. |
| 1. | Salary and wage earners. Such persons whose monthly salaries or wages, | |
| (a) exceed rupees 5,000 but do not exceed rupees 10,000 | 175 per month | |
| (b) exceed rupees 10,000 | 2500 per annum, to be paid in the following manner: – | |
| a) rupees two hundred per month except for the month of February; | ||
| b) rupees three hundred for the month ofFebruary | ||
| 2. | (a) Legal Practitioners including Solicitor and Notaries; | 2500 per annum |
| (b) Medical Practitioners, including Medical Consultants and Dentists; | 2500 per annum | |
| (c) Technical and Professional Consultants, including Architects,Engineers, R.C.C. Consultants, Tax Consultants, Chartered Accountants, Actuaries and Management Consultants; | 2500 per annum | |
| (d)Chief Agents, Principal Agents, Insurance Agents and Surveyors and Loss Assessors registered or licensed under the Insurance Act, 1938, U.T.I. Agents under U.T.I. Scheme, N.S.S. agents under postal Scheme; | 2500 per annum | |
| (e)Commission Agents, Dalals and Brokers (other than estate brokers covered by any other entry elsewhere in this Schedule); | 2500 per annum | |
| (f)All types of Contractors (other than building contractors covered by any other entry elsewhere in this Schedule); and | 2500 per annum | |
| (g)Diamond dressers and diamond polishers; having not less than one year’s standing in the profession. | 2500 per annum | |
| 3. | (a) Members of Association recognised under the Forward Contracts (Regulations) Act, 1952 | 2500 per annum |
| (b) (i) Member of Stock Exchanges recognised under the Security Contracts (Regulation) Act, 1956; | 2500 per annum | |
| (b) (ii) Remisiers recognised by the Stock Exchange; | 2500 per annum | |
| 4. | (a) Building Contractors; | 2500 per annum |
| (b) Estate Agents, Brokers or Plumbers, having not less than one year’s standing in the profession. | 2500 per annum | |
| 5. | Directors (other than those nominated by Government) of Companies registered under the Companies Act, 1956, and Banking Companies as defined in the Banking Regulation Act, 1949,Explanation : The term ‘Directors’ for the purpose of this entry will not include the persons who are Directors of the companies whose registered offices are situated outside the State of Maharashtra and who are not residing in the State of Maharashtra. | 2500 per annum |
| 6. | (a) Bookmakers and Trainers licensed by the Royal Western India Turf Club Limited; | 2500 per annum |
| (b) Jockeys licensed by the said Club | 2500 per annum | |
| 7. | Self-employed persons in the Motion Picture Industry, Theatre, Orchestra, Television, Modelling or Advertising Industries, as follows: | |
| (a) Writers, Lyricists, Directors, Actors and Actresses (excluding Junior Artists), Musicians, Play-back Singers, Cameramen, Recordist, Editors and Still-Photographers, | 2500 per annum | |
| (b) Junior Artists, Production Managers, Assistant Directors, Assistant Recordists, Assistant Editors and Dancers. | 1000 per annum | |
| 8. | Dealers registered under the Maharashtra Value Added Tax Act, 2002, or Dealers registered only under the Central Sales Tax Act, 1956, whose annual turnover of sales or purchases,- | |
| (i) is rupees 25 lakh or less | 2000 per annum | |
| (ii) exceeds rupees 25 lakh | 2500 per annum | |
| 9. | Occupiers of Factories as defined in the Factories Act, 1948, who are not covered by entry 8 above | 2500 per annum |
| 10. | (1)(A) Employers of establishments as defined in the Bombay Shops and Establishment Act, 1948, where their establishments are situated within an area to which the aforesaid Act applies, and who are not covered by entry 8 – Such employers of establishments,- | |
| (a) where no employee is employed | 1000 per annum | |
| (b) where not exceeding two employees are employed | 2000 per annum | |
| (c) where more than two employees are employed | 2500 per annum | |
| (B) Employers of establishments as defined in the Bombay Shops and Establishments Act, 1948, where their establishments are not situated within an area to which the aforesaid Act applies, and who are not covered by entry 8 –Such employers of establishment,- | ||
| (a) where no employee is employed | 500 per annum | |
| (b) where not exceeding two employees are employed, | 1000 per annum | |
| (c) where more than two employees are employed | 2500 per annum | |
| (2) Persons owning / running STD / ISD booths or Cyber Cafes, other than those owned or run by Government or by physically handicapped persons; | 1000 per annum | |
| (3) Conductors of Video or Audio Parlours, Video or Audio Cassette Libraries, Video Game Parlours; | 2500 per annum | |
| (4) Cable Operators, Film Distributors; | 2500 per annum | |
| (5) Persons owning / running marriage halls, conference halls, beauty parlours, health centres, pool parlours; | 2500 per annum | |
| (6) Persons running / conducting coaching classes of all types | 2500 per annum | |
| 11. | Owners or Lessees of Petrol / Diesel / Oil Pumps and Service Stations / Garages and Workshops of Automobiles | 2500 per annum |
| 12. | Licensed Foreign Liquor Vendors and employers of Residential Hotels and Theatres as defined in the Bombay Shops and Establishments Act, 1948. | 2500 per annum |
| 13. | Holders of permits for Transport Vehicles granted under the Motor Vehicles Act, 1988, which are used or adopted to be used for hire or reward, where any such person holds permit or permits for,- | |
| (a) three wheeler goods vehicles, for each such vehicle | 750 per annum | |
| (b) any taxi, passenger car, for each such vehicle | 1000 per annum | |
| (c) (i) goods vehicles other than those covered by (a) | 1500 per annum | |
| (c) (ii) trucks or buses | 1500 per annum | |
| for each such vehicle :Provided that the total tax payable by a holder under this entry shall not exceed rupees 2,500 per annum. | ||
| 14. | Money lenders licensed under the Bombay Money-lender Act, 1946 | 2500 per annum |
| 15. | Individuals or Institutions conducting Chit-Funds | 2500 per annum |
| 16. | Co-operative Societies registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960 and engaged in any profession, trade or calling — | |
| (i) State level Societies | 2500 per annum | |
| (ii) Co-operative sugar factories and spinning Mills | 2500 per annum | |
| (iii) District level Societies | 750 per annum | |
| (iv) Handloom weavers co- operative societies | 500 per annum | |
| (v) All other co-operative societies not covered by clauses (i), (ii),(iii) and (iv) above. | 750 per annum | |
| 17. | Banking Companies, as defined in the Banking Regulation Act, 1949. | 2500 per annum |
| 18. | Companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling. | 2500 per annum |
| 19. | Each Partner of a firm (whether registered or not under the Indian Partnership Act, 1932) engaged in any profession, trade, or calling. | 2500 per annum |
| 20. | Each Co-parcener (not being a minor) of a Hindu Undivided Family, which is engaged in any profession, trade or calling. | 2500 per annum |
| 21. | Persons other than those mentioned in any of the preceding entries who are engaged in any profession, trade, calling or employment and in respect of whom anotification is issued under the second proviso to sub-section (2) of section 3 | 2500 per annum |
Note: 1.
Notwithstanding anything contained in this Schedule, where a person is covered by more than one entry of this Schedule, the highest rate of tax specified under any of those entries shall be applicable in his case. This provision shall not be applicable to entry 16(iv) of the schedule.
Note: 2.
For the purposes of Entry 8 of the Schedule, the Profession Tax shall be calculated on the basis of the “turnover of sales or purchases” of the previous year. If there is no previous year for such dealer, the rate of Profession Tax shall be Rs. 2000. The expressions “turnover of sales” or “turnover of purchases” shall have the same meaning as assigned to them, respectively, under the Maharashtra Value Added Tax Act, 2002. ”
i want to know prof tax default filings solving procedure
i want to know default in filing of the return and payment of tax under the prof tax act 1975
Please Tell about professional Tax for the handicapped servant working in the Maharashtra state government
Profession Tax which is paid by Individuals, Is it refundable or not. What are the rules for that? What are New profession Tax Rates for the Year 2011-12? Please reply!
if an employee working in the state where p.tax is not applicable, but the h.o. situated in the state where p.tax is applicable, so the p.tax is deductible from the salary of that employee?
please confirm me the suggested reading for this.
regards,
rahul bhardwaj
9289548558
hallo sir,
i am owner of medical shop in Maharashtra. in my city shop act not applicable in my shop no servent my sales & purchase is less than Rs 500000/-.can i pay professional tax.please tell me
thanks…
I want to know about the professional tax for Individuel and componey. I am going to open my new company regarding that i want to understand about PT.
Pls send me the updates
Also how to pay the professiontax online ?
Pls guide
Thanks,
Jyoti
Please update me all related tax so that all my tax are paid on time
it is 30-06-2011
hallo sir, please tell me what is the due date of payment of professional tax in the maharashtra
thanking you………..
Dear Sir,
For a senior citizen aged 65 and living in Mumbai, kindly let me know the proceedure to be followed for getting the exemption certificate and shall be thankful where the application to be forwarded.
Thanking you,
K.Raman.
Iam aged 65 and as per Profession tax Act, I am exempted. Kindly let me know the proceedures I have to follow for getting the exemption and where i have to submit my application for exemption.I am residing at Mulund (East), Mumbai-400081.
the person who have to pay professional tax of Rs.800. can you give me a detail
pls send profession tax challan and information about to fillup it on following address mailme.nemi@rediffmail.com
I want to how I am online file the PT on online please inform me. which is the website
has b george been given any reply on the same matter
is ex sevicemen exempted from payment of maharashtra professional tax
Respected Sir,
We wants new on line profession tax No. My old No. Is PT/R/1/1/21/8897
Thanking you,we remain.
Yours Faithfully.
Dilip Sonawane
i want professional tax challan form iii as early as possible
Dear All,
I want to ask do foreign directors also have to have professional tax number.
DEAR SIR
I AM SACHIN MY QUESTION IS THAT IF ANY PERSONS HAVING INCOME FROM EMPLOYMENT
& HIS EMPLOER DEDUCTE HIS PROFEESINAL TAX BUT HIS INCOME IS UNDER THE SLAB RATE
EXEMPT INCOME SHOULD HE GET THE REFUND OF PROFEESINAOL TAX PAID BY HIM OR NOT?
Dear Sir,
I am working for a well known real estate developer in mumbai and i am looking after the labour laws compliance.
My question is – Do we have to ask the contractor’s to deduct professional tax from the wages of his labourers on monthly basis and submit the copy of PT paid receipt alongwith PF ? The contractors are deduction PT for their permanent employees and I am asking for local workers/labourers ?
If employee is getting Salary above 11000 is February only what is prof of that Employee. 200 or 300 Please advice
how do I locate my new professional tax number.I have an old registration number using which I have been paying professional tax regulrly.with change in numbers I am unable to locate or find my new number
Dear Sir,
We are basically a civil contractor, we also sub contract some work to sub contractors. I want to know if the subcontractor does not pay the professional tax, whether the liability will come on the principal contractor? an early reply is appreciated.
Regards
Sir,
If any worker is drawing salary of Rs.4950/- but if he gets Rs.200/- for his extra duty (over time) then he has to pay Prof tax for that month @ Rs.175/- . Please clarify
If employee is getting Salary above 11000 is February only what is prof of that Employee. 200 or 300 Please advice
what are the professional tax slabs in andra pradesh after the presentation of union budget 2011? please provide deteils.
Dear Sir,
My Question is that if any person do not Contunue for full year i.e Apr. to Mar. (Work From jun. to Mar.) i.e for 10 Months then what should be is P.tax deduction in the month of Feb. & why ?
Pl.Reply
Thank you
Deepak
I would like to know a company having a base office in maharashtra and rgistere under profesion Tax Act in Maharashtra and its employees working in various state but salary paid from its base office after deducting PT from employee salary and deposited in Maharashtra.Do you think company required to get registration at various state where its employees is working
i have company when i am paid profession tax amount behalf of my employee when i am tax amount its my expenses or tax liability when its my expenses under which head entry should record under balance sheet.
If profession Tax No (Registration Certificate) for Employer is taken on 19.03.2003 then when should be first payment made. In 2002-03 liability was Rs.1700/- and Rs.6800/- paid (amount credited to PT A/c. on 30.06.2003) do I need to pay interest on first year payment and will i be considered under amnesty scheme of pay for four years and get one year free.
pls guide
Hi..
i m working in a company as an HR, in my company labor whose salary is more than 10,000, should i cut professional tax for him..
plz guide me..
hi..
i am working in a company as an HR, i want to know that if a worker/labor has salary more than 10,000 theh should i cut his profession tax…plz guide me…
i am working in part time & i get salary of rs 2500/- pm if they increase to 3000/- their is question of dedction of profession tax or not
I am working a company,Gross 13000/- PM, My Question is P Tax Deduction if a month present only 5 days and only 5 days salary calculate.
So this month salary applicable for P Tax ?
hi,
I am salaried & i also have my business of transport but form salary Prof.tax is deducted 175 per month & i also have to pay Rs.2500 for my vehicles whhile it fitness passing from RTO so i am getting deducted double from my salary & own i am paying what is solution to save it.
I’m handicapped employee. Plz tell me slab of Profession Tax for handicapped employee in maharastra
What is the procedure to name of the company in professional Tax Act
Pvt. Ltd. Co. registered in Mahrashtra with ROC, but business is from Daman. No business activity from Maharashtra. Is Profession tax Registration in Maharashtra required as Co.?
Dear Sir,
Co. is registered with ROC in Maharashtra. Where as all operation are from Daman.
Is co. liabile for P.T. in Maharashtra as entity?(not as employer).
VAT no. etc. is at Daman since all the business is from Daman.
No business activities in Maharashtra.
Dharmesh Shah
ple send deatils of profession tax deatls pt no-1/5/9/7127
HOW WILL I GET MY NEW PROFESSION TAX NUMBER ?????
PLEASE TELL ME THE PROCEDURE
my company is registered under section 25 of companies act 1956.
i want to know can we pay tax for 5 years in advance ? what will be the amount ?
i am salaried person my wife is handicapped more than 50% does i get exemption to pay p.tax.
Is there any employee limit to deduct profession tax? Like 10 employees or so, or is it applicable for everybody who crosses 5,000 per month?
Plus, if one is a director in a company as well as a partner of a firm, is his tax liability Rs. 5,000 or Rs. 2,500 for the year?
Any answer to my question?
Senior Citizen above 65 years age in the state of gujarat is he liable to pay profession tax?if yes how much per month?
our company name is R.G. scientific enterprises ltd. our prof. tax no. is PT/R/I/I/28/6507 our bank is not accepting challan of our employees prof. tax. can we know the reason, whether our no. has been changed or not if yes then can we know our new no.
Dear Sir,
I am handicapped person with exact 40% disability. So can I get exemption in PTax. & is any process for the same.
Please confirm.
Regards
Sudhakar