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 am replying to several questions raised by readers on Profession Tax in the State of Maharashtra.
1) Irrespective of your income, any professional, who is not handicapped and under the age of 65 years, has to pay Rs2,500 Profession Tax every year.
2) If you are a handicapped 40% or more, get a medical certificate from any Civil Surgeon or Municipal Hospital, and apply for full exemption of Profession Tax. You apply to your district Profession Tax Officer, who sits in your district Sales Tax Office. If you find it any difficulty, write an application under Right to Information Act, 2005.
3) About 3 years ago, Maharashtra Government has changed profession tax registration number, and has informed it to all the Profession Tax payers by a challan,sent to their address. Still some people have not received their new numbers. Very few Banks have taken pain to inform profession tax payers to inform their new numbers, while paying the profession tax. Instead Banks have simply refused to accept Profession Tax, by saying that tax payer has quoted wrong profession tax number. If you find any difficulty in knowing your revised profession tax number, then write to your Profession Tax Officer to know your revised profession tax number, by giving him your old profession tax number. If he still does not give you, the write a letter to him under Right to Information Act, 2005.
Similarly, if you face any difficulty in paying your profession tax online, write a complaint to your Profession Tax Officer, and still he does not reply, write a letter under Right to Information Act, 2005.
ptec rates of maharashtra from apr 2004 to 2009
how to calculated pf tax. one include HRA, DA, TA. ya on total salaries ex. my salaries total 4000. includ 2800 basic 700 hra 500 ta.
Whether regd. public trust having a marraige hall is liable to pay Profession tax and liable to deduct profession tax from contract/ part time employees.
i am the director of transportation com i have around 15 employee from 3 yrs i never pay processional tax and neither i deduct from employes salary what to do
i am a medical practitioner my annual income is Rs.188250/-
my Professional Tax Liability ????????
plz send me solution
is prof tax is applicable to an apprentice?
Firm Registered under HUF – Coparceners are already Enrolment certificate holders paying Professional Tax. Does the HUF need to separately pay Profession Tax separately ?
Dear sir,
i am working in a Private organisation. my office head office’s is in mumbai but we are placed in delhi. please tell me this Professional Tax is applicable only in Maharastra or in Delhi also. our finance department is sitting at mumbai. what are the Tax Slabs for delhi.
I joined the company in 17-10.2011 than how much my profession tax will be deducted for the Feb Salary
If salary of one month is stopped & second month releases . What is the liabilty of profession tax is it one month or two month’s
I WANT TO KNOW THAT IF A PARTNER IN A PARTNERSHIP FIRM IS A MINOR PARTNER AND HIS LEGAL GURDIAN THEN SHOULD HE REQUIRED TO TAKE PROFESSION TAX NUMBER ?
Can we deduct the profession tax on the Leave salary ?
If Yes, Why
If No, Why
How much professional tax is to be remitted for the F.Y 2011-12 by a person who started working in the month of January 2012 and whose salary is around Rs.15,000/- p.m ?
Sir i want to know that whether a senior citizen running a proprieter firm is exempted from professional tax. If yes,in this case does the firm is liable to pay professional tax seperately. Pls advice and mail me.
i am employee of a psu working under ministry of heavy industries and appointed in Ahmedabad for 6 years. at that time none of tax under profession was deducted from my salary so far my knowledge.Now recently i have been transferred in may 2010 in maharashtra.
there is still none of single penny was deducted from my salary And Now suddenly i got informed that your PT will be deducted from 10-11 and 11-12 because by mistak it is delayed from us
Please help me out…
Makarand
nasik
9767441057
sir
i having disability with 60% in partial deaf and i am maharashtra gov employee
Can i have exemption in service tax and other taxes
what is the procedure for it
please mail me excatly what i do
where i found the ralated GR
I WANT TO KNOW IF PROFESSION TAX ONLINE. PLEASE GUIDE ME IN THIS REGARDS.
I am a employee of the ssi unit at thane (Maharastra state). at time of workers wages p.tax is cal. on over time or only on actual present days pl.guide us
sir,
i am working at Bangalore based construction company , we awarded one order at Pune and deployed approx 100 workers at Pune . Now the Principal Contractor are asking to take PT Registration at Pune and deposit the PT amount as per Maharashtra PT act for 100 worker ,
We are deducting the pt amount for the 100 worker as per state law of Karnataka and remit the amount in Karnataka only . Sir It is necessary to take PT registration for PUNE site
Pl advice
regards
saurabh sinha
09167249956
If the person doing job on salary and also doing business , in this condition how he will pay professional tax. Both of side or singal side. Please tell me.
Dear Sir,
Please send me Professional tax Slab 2011-2012 (Maharashtra)
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 dhangare sk.
Read more: New profession Tax Rates after Maharashtra Government Budget and Provisions https://taxguru.in/goods-and-service-tax/new-profession-tax-rates-after-mahrashtra-government-budget.html#ixzz1hQCCn5rE
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
s.k.d
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
Dhangare s.k.
I am working as consultant for an IT company. Shall I have to pay profession tax. Service charge and income tax. What is the ratio for each. shall I have to register for profession tax and service charge. Kindly let me have the needed information.
Thanks.
I am a homoeopathic doctor by profession,registered under Maharastra.but have not been earning any income for past 2 years owing to pregnancy followed by child care.Am I liable to pay any professional tax during this period? Prior to that I worked for 5 and 10 months respectively in 2 different hospitals.I wasnt aware that my former employers did not pay tax on my behalf then.I have not done any private practice. Kindly advise me as to how do i go about my payment of professional tax.
how to register new professional tax no. ? which site process i will do?
Please Share me PT Rate & Penalty Interest Details
Dear Sir,
We have query on Profession tax that We have been get notice for P.T. and dept. said to pay from year 2005 to till date. so Kindly request if we will be unable to pay the tax to government then i have question that Govt. will take any action or not?
Waiting for reply…
hello,
i hv question rearding 1975 professional tax act in maharashtra.
i hv reistration in homeopathy council maharashtra in “94.as dictor.
myquestion is —m i candidate to fill professional tax thouhg i hvn,t practice in my field.
pz,give me sm idea.
wt the law is telling…non practioner should also fill professional tax or only practioner r bounded to do so.
thanks.
What is the procedure to refund the amount of professional tax by wrongly deducted from the person of physically handicapped ?
What is the procedure for refund of Professional Tax which is wrongly deducted from the person of Physically Handicapped.
PL GIVE ME DETAILS OF PRO. TAX OF MAHARASHTRA PRIOR TO THIS CHANGE.(ie.prior to 01-07-2009.
Dear freinds
I have a PT code of mumbai now i have its sub code in other city….so can i take or what to do for subcode
dear sir,
Please tell me what documents requires for new applicant for the professional tax submission.
devendraa
please send me new p.tax challan and how it fill up
please send me new p.tax challan and how to fill up the form
If a person is director of four companies and he is getting remuneration from all the companies, in that case PT is to be deducted from all the companies or what? please clarify. Suppose if he is getting remuneration from one company and not from other companies in that case what is the method of deductiing professional tax?
Hi,
I am a Medico who is registered in Maharashtra but have been working outside of India for the last 10 yrs. Recently I received a letter from professional Tax Officer requesting to pay Professional Tax. I was wondering if my salary is not paid by Govt of Maharashtra do I still need to pay Professional Tax. If not then what are my options?
Thanks in advance.
Anna
is there PT applicable on directors remuneration? if yes. what is the criteria?
I want to know, if a partner in partnership firm attains 65 years on 24th Aug, 2011. Then is he required to pay the full year’s profession tax ? or he should pay the proportionate prof tax from 1st Apr 2011 to 24 th August, 2011.
Pls reply.
Plz tell me Profession Tax is deducted from basic salary or gross salary?
Sir,
We are an Charitable organisation(registered under income tax act) working for street children, women used in prostitution & their children, drug addicts. We deduct profession tax of our employees from their salary. I want to know that do we have to pay profession tax for our organisation
I am a registered medical practitioner with the Maharashtra Medical Council but I am not practicing since graduation. Am I liable to pay professional tax??
I need the address of Professional Tax Zonal office at Thane. The website\contact us option seems to be not supporting. Pls help!
i m having my own registration under properitory comapny , also i working with one comapny.
i have made payment for 5 years under my properitory comapny & now the employer is cutting the pt.
what to do? i am paying double professional tax
guide me
profession tax
senior citizen year
60,63 or 65
Sir/ Madam,
Myself santosh Vilas Bhosale working as a consultant for Govt. Maharashtra project. The institution where i am working they deduct TDS monthly at 10% from my consulting fee, So now tell me shall i pay professional tax extra on my consulting fee.
pls.tellme our companey has no worker ,but my sales tax consultant .p.t pay challan 2500 /-per yr .is right?