The Professional Taxes are collected by the state governments in some states in India for financing the implementation of Schemes of Employment Guarantees by the government. The Act of Tax on Professions, Trades, Callings and Employments came in to the state of Maharashtra with effect from 1st April 1975.
Professional Tax in Maharashtra is applicable on individuals, and all forms of organizations that involve professions, trades, employments and callings unless otherwise specifically exempted.
Here is an example on the liability of salary and wage earners:
- Whose salary per month does not exceed Rs 5000 per month: Tax – Nil
- Whose salary is more than Rs 5000 but less than Rs 10000 per month: Tax- Rs 175 per month.
- Salary Exceeding Rs 10000 per month: Rs 2500 per annum to be paid as- Rs 200 per month for 11 months, & Rs300 on February;
Certain classes of persons are exempted Under Section 27A, they are described in brief:
- Persons with permanent or more than 40% physical disabilities.
- Parents of physical disable or mentally retarded child.
- Senior Citizens over 65 years of age.
Due Date For Payment Of Professional Tax In Maharashtra
There was no time limit for assessment completion before; however, it has been enacted as per Section 7 of the Act with effect from April 1, 2004.
If any employer assesses tax liability on or after April 1, 2004, will now be considered time barred unless it is filed within 1 month of the year end to which it relates.
Time for filing Professional Tax Return by employer:
|Tax Liability||Payable||Salary for Months to be covered||When Due For Payment|
|Tax below Rs. 5,000||Annually Return||Previous year: March and current year: April to February||March 31st|
|Tax > =Rs. 5,000 but <Rs. 20,000 in previous year Or
In absence of any previous year
|April — June,||March — May,||June 30th|
|July — September,||June — August,||September 30th|
|Oct –December.||Sept. to November||December 31st|
|January– March||Dec. to February||March 31st|
|When Tax is >Rs. 20,000 in previous year||Monthly Returns e.g. May||Previous month’s Salary e.g. April||As per example May.|
Professional Tax Registration In Maharashtra
It is the duty of the employer to deduct and pay this tax on behalf of his employees. He must acquire Certificate of Registration from the authority before the expiry of thirty days from date his liability arises. It is paid by Challan No III, if there are some employees in his employment, exempted under section 27A of the Act, must submit documents in support of such exemption. If the employer fails to pay tax due as per rates mentioned in Entry 1, in the Schedule, or any other failure on his part to comply with the provisions of the Act, will attract penal charges.
- A firm is required to obtain Certificate of Enrollment for paying own professional Tax.
- Returns to avoid penal charges must be filed on or before the last day of the month to which it relates.
- The returns will be considered incomplete unless it contains the detailed salary list with tax amount deducted for the concerned period.
- The due date for persons with Certificate of Enrollment is June 30th, delay in obtaining such certificate will result a penalty of Rs 2 for day of delay.
- Any delay in payment will attract penal charges at the rate of 1.25% interest per month.
- False information or nonpayment of professional tax are subject to penal charges of 10% of the tax amount and three times of the tax payable amount respectively.
The address for Professional Tax Registration in Maharashtra is,
Professional Tax Office