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. ”
Am looking forward to get a new company registration and post registration additional PT form charges are applicable? Do we have to get it done immedietly or next financial year while paying tax in year end. Plz guide me. And anyone who can do the needful is welcome and send me qoutation, plz call me on 9833706714
If any amployee resigns & left organisation in the month of Feb & his Gross Salary is Rs 4000-5000 for the period. How much PT will be deducted from his salary for Feb-15
My query is,
A company having its head office in the Delhi are employing persons in the state of Maharashtra. The company does not have any office in the state of Maharashtra.
Please let us know whether employees are liable to pay professional tax. Also whether the company is liable to pay tax as employer’s contribution.
Thanks
I am physically handicapped person working in unaided private school, Bhandup. I want to know GR for Income Tax limit & Professional Tax exemption for handicapped person. If anyone know please give me details.
Thanks
Vidyanand Shinde
9892750733
sir,
My assumption is th word “Senior Citizen” is tho who crosse the age of 60 years.
Since Sr.Citizens are exempted from paying professional tax, why in that case the age is limited to 65 years.
Whether a person crossed the age of 60 years and is working in a company, is he liable to pay professional tax or he is exempted from paying PT.
i want to know the notification no regarding change of professional tax slabe to satishfy my auditor so please provide me on my e mail id Mr.subhashmishra@gmail.com
I am NRI since 2007, I have just registration with Medical council and may be based on that I received a notice from PT dept. Can you please clarify whether PT is applicable to me when neither I am residing in India nor earning in Indian Rupees.
Regards.
Dear Sir,
Hi. I am a tax consultant in Maharashtra. If you have any issues regarding registration, assessment and return filing work in Maharashtra VAT, Profession Tax, Service Tax, IEC kindly let me know. I provide service for the same. My contact details 7303680431.
Regards,
Hemraj Sharma
please let me know how to fill the quarterly return in the online. when I was log in the online and downloaded the Form III B, in that only monthly and yearly options is there, I cant see the Quarterly option. we paid for quarter. now how can I fill the return please let me know
scrap this professional tax please.
dear sir
why need to charge professional tax on hard earned money please return at least my principal amount and enjoy interest.
if any ruling party stops this tax will be benefitted in assembly elections
if Gross Salary is : 10,500/- ( Monthly )
& Earned Salary is : 9500/-
Then what is the Professional Tax in Maharashtra ( 175 or 200 ).
Dear Sir,
I am running a small firm of hardware in mumbai. My age is 70yrs. Do I have to pay any professional tax.
I have pay Professional tax till 2008 there after stopped paying professional tax.
Kindly let me know
i have to acquire a company which was incorporated in 1994 and it has not registered for pt. If i register now what is the amount i need to pay and what is the process
if the salary is 15000/- Gross per month and the attendents is 10% and approx salary after cutting 90% comes to 1500/- so than is PT to be deducted
what is the procedure for getting professional tax exemption for parents of mentally retarded children?
What is the procedure for getting tax exemption for parents of mentally retarded children.
SIR,
OUR COMPANY IN MAHARASTRA AND OUR ONE EMPLOYEE IS WORKING IN CHENNAI AS MARKEING MANAGER. OUR ALL SALARY PROCESS FROM MAHARASHTRA OFFICE. SO SIR SHALL WE DEDUCTION PROFESSION TAX FROM HIS SALARY OR NOT , BECAUSE HIS WORKPLACE IN OTHER STATE NOT IN MAHARASHTRA
Query for Professional Tax Calculation:
Whether the Professional Tax will be calculated on the sum of Gross Salary & Provident Fund or Gross Salary
Example: If My Gross Sal is 4500 & PF on (4500X12%) is 540 So, Total amount is 4500+540 = 5040
So, weather PT calculated on 4500 or 5040.. ??
Respected Sir/ Madam,
I am a employee/ enrolled person of Border Security Force, and presently posted in Maharashtra state where a campus was established by the GOI. I posted to this location i.e. in Maharashtra state in public interest not for my personal interest. I performed the duties at international borders for a period of 10 years and then posted to this location for a max. tenure of 04 years.After then i will be again posted to anywhere in India.
I WANT TO KNOW THAT, CAN I ALSO HAVE TO PAY PROFESSIONAL TAX TO THE GOVT OF MAHARASHTRA.
COMPANY REGISTERED IN MADHYA PRADESH AND OPENIING A BRANCH IN MAHARASHTRA, WHETHER DIRECTOR HAVE TO TAKE PTEC NO. IN MAHARASHTRA ALSO.
Hello sir I have got letter from PTO fr PT enrollment I have not yet enrolled but still they ask me to pay fr8yrs along with penalty or they said penalty can be waved now my question is how they can ask me to pay fr 8yr when I am not yet enrolled pls advice me the legality if am not paid
Dear Sir/Madam
Whether Profession Tax is liable for Over Time Wages, Leave Incashment, Incentive, Bonus, Ex-Gratia
Pl confirm.
Regards
Suhas V.
I have a medical shop and i have a ptec no. now i want to pay ptec from 01.01.2010.
Kindly inform me the amount to be pay per year.
My turnover less than 25 lakh.
SIR , I HAVE NOT REGISTRATION FOR PROFESSIONAL , I AM PRAVATE PRACTIONER AND FROM LAST 14 YR I AM PRACTISING CALCULATE MY PROFESSIONAL TAX.
Why maharashtra has professional tax more than other states in india?
Dear sir,
i am working in a Private organisation. my office head office’s is in mumbai but we are placed in Punjab. please tell me this Professional Tax is applicable only in Maharastra or in Punjab also. our finance department is sitting at mumbai. someone told me its is applicable only for mumbai Employees
kindly reply
Thanks
Sir,
I am retired as a clerk of Public Sector company. I am not doing any incomework . I am just doing social work. I surviving on pension income. Whether I am liable for profession tax
dayanand thakurdas indapur
i have profetional tax return cum challan for the profetional tax filling on the online
Due dates for monthly payment of Professional Tax
Dear Sir,
My firm is a Partnership firm having office in Mumbai but registered in Rajasthan with 7 partners (6 from Rajasthan & one belongs to Mumbai). I want to know whether Professional Tax is applicable for our Mumbai Branch.
Please reply.
Dear Sir
I belong to Punjab and working with a Company based at Mumbai. every month company deducting 200/- as Maharashtra Professional Tax Act of 1975. Is this tax applicable to me or not. if not Kindly give me the reason with any reffrence
Thank You
Dear Sir,
In Maharashtra is the Professional Tax is applicable to Trainee staff or Stipend paid employee
Thanks
My partnership company is registered in Gujarat state…and has VAT number in Mumbai ..as branch office…total four partners and all pay frequent Mumbai visit..stays at Gujarat.. business normally handles by manager getting salary of Rs 5600 per month.
Do we have to pay professional tax ??in Maharashtra??
Bipin
98692 88551
Sir,
I am retired Govt officer of Public Sector company. Since I am Law Graduate, I have obtained ‘Sanad’ from Bar council of Maharashtra after my retirement. I am not doing any legal practice. I am just doing social work. I surviving on pension income. Whether I am liable for profession tax eventhough I am not practicing.
Ashok Pandhi, Mumbai
I would like to know the following:
If a person receiving salary (more then Rs.10,000/-) from more then one company, is it necessary that all the company should deduct PT from his salary or any one of them deduct PT?
Further is any one of them is deducting then while filing the PT returns, how other company should disclose in his PT return?
kindly suggest.
I want to know that my HO is in Mumbai, and my sitting office is in Delhi, every month Rs 200/- are deducting from My salary as in name of Professional tax, so please tell me that i m liable for it or not.
is there any exexption form profession tax for school buses oprated by school itself.
I m employed with a company with headoffice at Hyderabad and presently working in Mumbai,Professional Tax is deducted in Hyderabad as my salary is processed in Hyderabad,the Mumbai Sales Tax office is asking me to pay professional Tax in Mumbai also.Am I liable to pay PT in two different states.Would like to have full details on this issue.
Regards,
Satish Korgaonkar
9820180145
Dear sir,
i am working in a Private organisation. my head office’s is in mumbai but my seting office in Punjab. please tell me this Professional Tax applicable on me. yes or not.
Sir
I need a copy of the letter exempting re-employed ex-servicemen from paying professional tax as per government of India , Ministry of Defence etter no 545/ 86 D ( pay/ sers ) dated 13 th Jut 87 that ex servicemen are exempted from payment of professional tax under para 288 ( A) of FR Part I ( 1963 Edn.
Thanking you,
Venkatachalapathy G.
Can any one clarify the following ?
Are the ex servicemen who are re- employed are exempted from professional tax?
As per instructions issued by government of India , Ministry of Defence etter no 545/ 86 D ( pay/ sers ) dated 13 th Jut 87 that ex servicemen are exempted from payment of professional tax under para 288 ( A) of FR Part I ( 1963 Edn)
Please clarify.
R/Sir
My Quires is that our Ltd company taken directly manpower for special work & special period & pay 6000/- casual salary,on this situation it,s liability of Company to pay P.T or deducted P.T from the salary of casual worker.
Pl give your valuable advice.
Omprakash Sharma.
Sir
my client has given leave encashment to workers. the workers are not retired.
Whehter professional tax is payable If yes how to calculate the tax liabilty
Whether any judgemtn is available on same.
Company is registered in maharashtra
partner profession tax (in maharashtra) not paid since 1999 & partner has not taken PTE No. since then. Partner want to take pte no now. so i want to know whether he would require to pay profession tax since 1999 or he would require to pay from 2005-06. please help
I am a dentist . I have received letter regarding professional tax payment. I do not practice or earn. Do I need to pay the tax?
please awaiting for your quick assistance on the same for which i would be thankful to you.
I am a post graduate dental student. I have received letter regarding professional tax payment. I do not practise or earn. Do I need to pay the tax?
sir,i m a transport oprator since 2000,but not enrolled under p.tax. now i approchced p.t.o.to enrollment as per new notification of govt. of maha.they assesed p.tax with int and with penalty.is it correct to assess int.
I am a registered medical practitioner with the Maharashtra Medical Council but I am not practicing since graduation. do i need to pay tax.??????????
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??