How to Handle Professional Tax in Maharashtra: Key Details
How to Handle Professional Tax in Maharashtra: Key Details
Mar 20, 2024
15 Mins
Introduction:
Whether you are a working professional or a business owner, paying professional taxes is essential. These deductions will be reflected on your pay slip. If you are an employee and have noticed your employer deducting this tax every month, it is important to understand everything about it.
All self-employed individuals, salaried employees, and organizations in Maharashtra are required to pay professional tax based on their income. This article will provide you with all the necessary details regarding professional tax payment.
Professional Tax in Maharashtra
The state government imposes professional tax on your earned income. As per Article 276 of the Indian Constitution, individuals working as salaried employees or in any profession are liable to pay professional tax based on the applicable rates set by the Maharashtra state government.
Maharashtra Professional Tax Rule
Under the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules, the government can impose professional tax. According to the Maharashtra professional tax rule, every salaried employee must pay this tax.
Employers of salaried individuals and self-employed individuals must obtain a certificate of registration or certificate of enrolment from the relevant authority. Additionally, you should apply for enrolment or registration within 30 days from the start date of your profession or business.
Professional Tax Applicability in Maharashtra
Professional tax in Mumbai applies to the following categories of individuals:
- Hindu Undivided Families (HUFs)
- Individuals
- Company/Association of persons/Co-operative Society.
Furthermore, only employers of salaried individuals are liable to pay professional tax on behalf of their employees. The employer deducts a certain amount of tax from the salary and deposits it with the municipal corporation.
Professional Tax Slab Rate in Maharashtra
The calculation of professional tax depends on your salary and the predetermined tax rates. You may have to pay between Rs 200 and Rs 2500 per month. See the table below for complete details:
Monthly Gross Salary Payable Professional Tax
Less than Rs 7500 0
Rs 7501 to Rs 10000 Rs 175 per month (Nil for women)
Rs 10001 and above Rs 200 per month except for February
Rs 300 for the month of February
Maharashtra Professional Tax Online Payment
After understanding the tax slab rate and the applicability of professional tax, the next question on your mind might be about the procedure to pay this tax. Follow the steps below to pay professional tax online without any hassle:
1. Visit the official website of the Maharashtra GST Department and click on the 'e-payment' option.
2. Select the appropriate option based on your professional tax payment status.
3. Choose the applicable professional tax act, either PTEC (Professional Tax Enrolment Certificate) or PTRC (Professional Tax Registration Certificate) Act.
4. Enter the necessary details, including the payable amount, period of professional tax payment, and mobile number.
5. Click on 'Proceed to Payment'.
6. After successful payment, an acknowledgment receipt will appear on the screen. You can take a screenshot or download it for future reference.
Alternatively, you can make payments through an alternative process. Follow the steps below:
1. Go to the official website of the Sales Tax Portal of GRAS and select the tax type.
2. Provide the necessary TIN. For PTRC, enter the 12-digit TIN; for PTEC, enter the 11-digit TIN.
3. Click on the 'Submit' option. Then, provide the required details such as your mobile number, office location, and employer name.
4. Choose the payment type and select the payment period after the ID is automatically generated.
5. Provide all payment-related details and click the 'Proceed' option. A payment summary will appear on your screen.
6. Evaluate all the details and click on 'OK'. A Government Reference Number will then be displayed.
7. Click 'OK' to be redirected to the bank's website. After making a successful payment, a receipt will be generated. Download it as needed.
Maharashtra Professional Tax Payment Due Date
In Maharashtra, the due date for professional tax payments depends on the date of enrollment. For example, businesses that enrolled before May 31 of a given year must pay this tax by June 30 of the same year. On the other hand, organizations that enrolled after May 31 must pay professional tax within one month of the enrollment date.
Maharashtra Professional Tax Late Payment Penalty
If an enrolled individual fails to pay the professional tax on time, a penalty of 1.25% tax is payable per month. Employers who fail to pay or delay payment must pay 2% interest per month on the total amount due.
Maharashtra Professional Tax Exemption
The following individuals are exempted from paying professional tax in Maharashtra:
- Senior citizens aged 65 years and above.
- Parents of physically challenged children.
- Individuals with more than 40% disability.
- Badli workers of the textile industry.
Final Word
According to the Professional Tax in Maharashtra Act, individuals actively engaged in any profession in Maharashtra are liable to pay professional tax. Make sure to pay the applicable tax on time to avoid incurring hefty penalties.
Introduction:
Whether you are a working professional or a business owner, paying professional taxes is essential. These deductions will be reflected on your pay slip. If you are an employee and have noticed your employer deducting this tax every month, it is important to understand everything about it.
All self-employed individuals, salaried employees, and organizations in Maharashtra are required to pay professional tax based on their income. This article will provide you with all the necessary details regarding professional tax payment.
Professional Tax in Maharashtra
The state government imposes professional tax on your earned income. As per Article 276 of the Indian Constitution, individuals working as salaried employees or in any profession are liable to pay professional tax based on the applicable rates set by the Maharashtra state government.
Maharashtra Professional Tax Rule
Under the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules, the government can impose professional tax. According to the Maharashtra professional tax rule, every salaried employee must pay this tax.
Employers of salaried individuals and self-employed individuals must obtain a certificate of registration or certificate of enrolment from the relevant authority. Additionally, you should apply for enrolment or registration within 30 days from the start date of your profession or business.
Professional Tax Applicability in Maharashtra
Professional tax in Mumbai applies to the following categories of individuals:
- Hindu Undivided Families (HUFs)
- Individuals
- Company/Association of persons/Co-operative Society.
Furthermore, only employers of salaried individuals are liable to pay professional tax on behalf of their employees. The employer deducts a certain amount of tax from the salary and deposits it with the municipal corporation.
Professional Tax Slab Rate in Maharashtra
The calculation of professional tax depends on your salary and the predetermined tax rates. You may have to pay between Rs 200 and Rs 2500 per month. See the table below for complete details:
Monthly Gross Salary Payable Professional Tax
Less than Rs 7500 0
Rs 7501 to Rs 10000 Rs 175 per month (Nil for women)
Rs 10001 and above Rs 200 per month except for February
Rs 300 for the month of February
Maharashtra Professional Tax Online Payment
After understanding the tax slab rate and the applicability of professional tax, the next question on your mind might be about the procedure to pay this tax. Follow the steps below to pay professional tax online without any hassle:
1. Visit the official website of the Maharashtra GST Department and click on the 'e-payment' option.
2. Select the appropriate option based on your professional tax payment status.
3. Choose the applicable professional tax act, either PTEC (Professional Tax Enrolment Certificate) or PTRC (Professional Tax Registration Certificate) Act.
4. Enter the necessary details, including the payable amount, period of professional tax payment, and mobile number.
5. Click on 'Proceed to Payment'.
6. After successful payment, an acknowledgment receipt will appear on the screen. You can take a screenshot or download it for future reference.
Alternatively, you can make payments through an alternative process. Follow the steps below:
1. Go to the official website of the Sales Tax Portal of GRAS and select the tax type.
2. Provide the necessary TIN. For PTRC, enter the 12-digit TIN; for PTEC, enter the 11-digit TIN.
3. Click on the 'Submit' option. Then, provide the required details such as your mobile number, office location, and employer name.
4. Choose the payment type and select the payment period after the ID is automatically generated.
5. Provide all payment-related details and click the 'Proceed' option. A payment summary will appear on your screen.
6. Evaluate all the details and click on 'OK'. A Government Reference Number will then be displayed.
7. Click 'OK' to be redirected to the bank's website. After making a successful payment, a receipt will be generated. Download it as needed.
Maharashtra Professional Tax Payment Due Date
In Maharashtra, the due date for professional tax payments depends on the date of enrollment. For example, businesses that enrolled before May 31 of a given year must pay this tax by June 30 of the same year. On the other hand, organizations that enrolled after May 31 must pay professional tax within one month of the enrollment date.
Maharashtra Professional Tax Late Payment Penalty
If an enrolled individual fails to pay the professional tax on time, a penalty of 1.25% tax is payable per month. Employers who fail to pay or delay payment must pay 2% interest per month on the total amount due.
Maharashtra Professional Tax Exemption
The following individuals are exempted from paying professional tax in Maharashtra:
- Senior citizens aged 65 years and above.
- Parents of physically challenged children.
- Individuals with more than 40% disability.
- Badli workers of the textile industry.
Final Word
According to the Professional Tax in Maharashtra Act, individuals actively engaged in any profession in Maharashtra are liable to pay professional tax. Make sure to pay the applicable tax on time to avoid incurring hefty penalties.
Author
Pluto Team
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