Understanding Professional Tax Rules in Maharashtra

Overview:

Understanding professional tax is necessary for both working professionals and business owners. This tax deduction is noted on payslips, making it crucial for employees who see these monthly deductions to grasp its details. All self-employed individuals, salaried employees, and organizations in Maharashtra must adhere to professional tax regulations based on their income. Here, we provide an in-depth explanation of professional tax payment.

Professional Tax in Maharashtra

The state mandates a tax on earned income. Under Article 276 of the Indian Constitution, individuals in salaried jobs or professional roles are required to pay professional tax in accordance with Maharashtra's regulations.

Maharashtra Professional Tax Rule

The Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules mandates professional tax payment. All salaried employees must comply. Employers and self-employed individuals must register or enroll with the relevant authority within 30 days from starting business.

Professional Tax Applicability in Maharashtra

In Mumbai, this tax applies to:

Hindu Undivided Families (HUFs)
Individuals
Companies/Associations of persons/Co-operative Societies

Employers of salaried personnel are tasked with paying professional tax on behalf of employees. They deduct the tax from salaries and deposit it with the municipal corporation.

Professional Tax Slab Rate in Maharashtra

Tax calculation depends on salary and fixed rates, ranging from Rs 200 to Rs 2500 monthly:

Monthly Gross Salary - Payable Professional Tax
Less than Rs 7500 - 0
Rs 7501 to Rs 10000 - Rs 175/month (exempt for women)
Rs 10001 and above - Rs 200/month; Rs 300 in February

Maharashtra Professional Tax Online Payment

Once the tax slabs are understood, you can make online payments as follows:

Visit the Maharashtra GST Department site and select 'e-payment'.
Select based on your payment status.
Choose PTEC or PTRC Act.
Enter details like amount, period, and mobile number.
Click 'Proceed to Payment'.
After successful payment, an acknowledgment receipt is displayed. Save it for future reference.

Alternatively, payments can be processed via:

Visit the Sales Tax Portal of GRAS and choose the tax type.
Enter necessary TIN: 12-digit for PTRC, 11-digit for PTEC.
Click 'Submit' and provide mobile number, office details, and employer name.
Select payment type and period after generating ID.
Enter payment details and proceed. A summary will appear.
Verify and click 'OK'. A Government Reference Number is generated.
You'll be redirected to your bank's site for payment; then download the receipt.

Maharashtra Professional Tax Payment Due Date

The due date in Maharashtra is tied to your enrollment date. Businesses enrolled by May 31 must pay by June 30; those enrolled later have one month for payment.

Professional Tax Late Payment Penalty in Maharashtra

Late payment incurs a 1.25% penalty monthly. Employers face a 2% interest per month on delayed payments.

Maharashtra Professional Tax Exemption

Exemptions exist for:

Senior citizens aged 65 and above
Parents of physically challenged children
Individuals with over 40% disability
Badli workers in the textile industry

Conclusion

According to the Professional Tax Act in Maharashtra, professionals must ensure timely tax payments to avoid penalties. Staying compliant is imperative.