Professional Tax is a State level Tax in India on Professions, Trades, Callings and Employments.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 Enrollment from the Profession Tax Authority. Once this certificate is obtained, the person can discharge their individual tax liability for five years by paying lump sum 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 Certificate under which the payment in respect of taxes deducted from employees salaries can be made. Also as a firm, the organization is required to obtain Enrollment Certificate and pay Profession tax on it’s behalf.
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 Enrollment 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 Enrollment or Registration Certificate – Penalty of Rs. 2/= (Rupees Two) per Day.
Providing false information regarding enrollment – Penalty of 3 times tax amount.
Non-payment of profession tax – Penalty equal to 10% of the amount of tax can be imposed.