Feb 202021
 

The Government of Maharashtra vides notification no.PFT-1221/C.R.3/Taxation-3 has amended the Maharashtra State Tax on Professions, Trades, Callings And Employments Rules, 1975.

As per the notification, for providing permanent account number or tax deduction and collection account number under rule 4A, it is added that when a company applies for a certificate of registration or enrolment, it shall provide the Permanent Account Number (PAN) or Tax Deduction and Collection Account Number (TAN) under the Income Tax Act, 1961 of all the directors and authorized signatory of the Company. If Pan number is not available then passport Number
This is a permanent requirement while applying the PTRC & PTEC Number for New Company

Furthermore, the provision for the exhibition of certificates under rule 8 has been deleted. Please refer to the notification for more details

Download Notification:- Maharashtra Profession Tax (2nd Amendment) 2021

Courtesy: Prakash Consultancy Services

Apr 302015
 

In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in English of the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2015 (Mah. Act No. XVII of 2015), is hereby published under the authority of the Governor.

Following Amendments passed

1. (Levy, Amendment and Validation) Act, 2015.
2. AMENDMENT TO THE MAHARASHTRA PURCHASE TAX ON SUGARCANE ACT, 1962.
3. AMENDMENT TO THE MAHARASHTRA STATE TAX ON PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS ACT, 1975.
4. AMENDMENT TO THE MAHARASHTRA TAX ON THE ENTRY OF GOODS INTO LOCAL AREAS ACT, 2002.
5. AMENDMENTS TO THE MAHARASHTRA VALUE ADDED TAX ACT, 2002.
6. VALIDATION AND SAVINGS

** In regards to Profession Tax, if any employer has finalize the salary of Apr-2015 Pls recalculate  the same as per new slab

(b) (i) in case of a male, exceed Rs. 7,500 but do not exceed Rs. 10,000 ;
175 per month
(ii) in case of a female, do not exceed Rs. 10,000 ;
Nil
Pls click below is the said Notification of the same

Download Circular

courtesy: [Prakash Consultancy Services]

Apr 212015
 

An overview on Professional Tax

Meaning of professional tax:

Professional Tax is the tax charged by the state governments in India.

Any one earning an income from salary or any one practicing a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. Different states have different rate and method of collection. Following states impose this levy in India – Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh etc. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.

Professional tax is levied by particular Municipal Corporations. The maximum amount payable per year is Rs.2,500/- and in line with your salary, there are predetermined slabs every state acts.

Applicability of Professional Tax as per the Constitution of India:

Article 276 of the Constitution of India lays down that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act.”

As the different states have its own act for its applicability, levy, collection and assessment hence it is imperative to provide you a list of states where professional tax is applicable and acts passed in those states to ritualized its collection.

Here a list of states with enactments passed for effective implementation of professional tax administration is provided for your ready reference.For more information on professional tax slab, please refer to our other blog on the topic.

 Professional Tax in various States

States where professional tax is implemented

1.Andhra Pradesh
2.Assam
3.Bihar
4.Chattisgarh
5.Gujarat
6.Karnataka
7.Kerala
8.Madhya Pradesh
9.Maharashtra
10.Manipur
11.Meghalaya
12.Mizoram
13.Orissa
14.Puducherry
15.Tamil Nadu
16.Tripura
17.Jharkhand
18.Punjab
19.West Bengal
20.Himachal Pradesh
21.Jammu & Kashmir
22.Nagaland
23.Sikkim
24.Rajasthan
25.Telangana

States where professional tax is not implemented

26.Arunachal Pradesh
27.Delhi
28.Goa
29.Haryana
30.Uttar Pradesh
31.Uttaranchal
32.Andaman & Nicobar
33.Chandigarh
34.Daman & Diu
35.Dadra & Nagar Haveli
36.Lakshadeep

Jul 052014
 

Maharashtra Govt, has amended Profession Tax Act w.e.f. 1.7.2014 and changed P. Tax slabs are as follows.

Gross Salary
Profession Tax
Monthly gross salary do not exceed Rs.7500/-
Rs. Nil
Monthly gross salary exceed Rs.7501 but do not exceed Rs.10000/-
Rs.175/- pm
Monthly gross salary exceed Rs.10000/-
P Tax Rs.200/- pm &
in Feb Rs.300/- pm

 

 

 

Nov 212012
 

Profession Tax on Employees in Maharashtra

Profession tax also called tax on employment is imposed by a state under article 276 of the Constitution of India. This tax is deducted from the salary of an employee every month. The profession tax amount is considered exemptible from taxable income of the employee.

Profession Tax is imposed upon professions and employments although the employee is already paying an income tax. As per Article 276, Constitution of India, the total amount payable to any one municipality, local board, district board, or any other legislative agency in the state by way of taxes on Professions, Trades, Callings and Employments is not supposed to exceed Rs. 2,500 p.a.

Employer who must have a certificate of enrollment from tax government department is defined as a person or officer who is answerable for payment or salary or wages of the employee. This authority is supposed to be the head of the office of any establishment or employer.

Profession Tax

  1. An Employer having more than one place of work, will have to apply separately to each authority as regards the place of work coming under the jurisdiction of that authority.
  2. Company hiring many persons has to pay profession tax since being engaged in trade and needs to have certificate of enrollment.
  3. Every Employer has to receive a certificate of Registration within Thirty days from the date of becoming able to pay Profession Tax.
  4. Each person liable to pay tax under this Act has to receive a Certificate of Enrollment in the prescribed manner from the prescribed authority.
  5. If a person is in employment of any diplomatic office, office of consulate, or trade commissioner of foreign country located in any part of the state, he or she has to obtain a certificate of enrollment in case he or she is liable to pay tax and pay the tax by themselves. These offices don’t have to get certificate of registration. If any foreigners are employees in these offices then they are not liable to pay profession tax.
  6. If a person who has to apply for a certificate of enrollment, and has several work places within State of Maharashtra, he or she will need to submit one application for all places of work. He is supposed to give one name of place of work as main place work and submit the application to an authority under whose jurisdiction, the main place of work is located.

Profession Tax Slab for Salaried Employees in Maharashtra

Salary or Wages
Upto Rs.5000/- Nil
Rs.5,001/- to Rs.10,000/- Rs.175/-
Rs.10,001/- and above Rs.200/-*
* Rs.300/- for the month of February

Registration

The employer is supposed to deduct tax as per above mentioned rates and deposit with Government. However even if profession tax not deducted, employer is liable to pay tax. For this purpose the Employer should obtain the Registration Certificate from Department within 30 days from date of his liability. The employer should also file the returns and pay taxes as per monthly/quarterly/annual return which ever is applicable to him, determined as per tax liability.

Liability to File Return and Payment of Tax for Employer (From 1-4-2011) onwards

Tax Liability Periodicity Months of salary to be covered Due Date
Less than  Rs. 50,000 in previous year Annual March of the previous year and April to February of the current year 31st March

Rs. 50,000/- or more in previous year

Monthly

Salary of previous month

End of the month for which return is filed

In case of first year of registration

Monthly Salary of previous month

End of the month for which return is filed

With effect from 1st February, 2011, an Assessee whose Profession Tax liability during the previous year is Rs. 20,000 or more is required to upload his return in Electronic Mode. (Refer Notification No. VAT/AMD-1010/IB/PT/ADM-6 dated 26-11-2010) and is thus able to make payment of Profession Tax in Form MTR-6.

Profession Tax Penalties

– Delays in obtaining Enrollment , a penalty of Rs. 2/per day and  for Registration, a penalty of Rs. 5/- per day.
– Providing false information regarding enrollment – Penalty of 3 times of tax amount.
– Non-payment or late payment of profession tax – Penalty is equal to 10% of the amount of tax to be imposed.
– Late filing of Returns – Penalty of Rs. 300 per return.

Profession tax are exempted in the following cases,

  1. Senior Citizen above 65 years age is tax exempt.
  2. Person suffering from permanent physical disability.
  3. Parent of a child suffering from physically disability.
  4. Parent of a mentally retarded child.
Sep 112012
 

The following are the Professional Tax Slabs for all the different states in India :-

Salary Slabs Per Month Professional Tax Per Month
Andhra Pradesh
upto Rs.5,000/- Nil
Rs.5,001/- to Rs.6,000/- Rs.60/-
Rs.6,001/- to Rs.10,000/- Rs.80/-
Rs.10,001/- to Rs.15,000/- Rs.100/-
Rs.15,001/- to Rs.20,000/- Rs.150/-
Rs.20,001/- and above Rs.200/-
Assam
upto Rs.3,500/- Nil
Rs.3,501/- to Rs.5,000/- Rs.30/-
Rs.5,001/- to Rs.7,000/- Rs.75/-
Rs.7,001/- to Rs.9,000/- Rs.110/-
Rs.9,001/- and above Rs.208/-
Chattisgarh
upto Rs.12,500/- Nil
Rs.12,501/- to Rs.16,667/- Rs.150/-
Rs.16,668/- to Rs.20,833/- Rs.180/-
Rs.20,834/- to Rs.25,000/- Rs.190/-
Rs.25,001/- & above Rs.200/-
Gujarat
upto Rs.2,999 Nil
Rs.3,000/- to Rs.5,999/- Rs.20/-
Rs.6,000/- to Rs.8,999/- Rs.40/-
Rs.9,000/- to Rs.11,999/- Rs.60/-
Rs 12,000/- and above Rs.80/-
Karnataka
upto Rs.9,999/- Nil
Rs.10,000/- to Rs.14,999/- Rs.150/-
Rs.15,000/- and above Rs.200/-
Kerala
upto Rs.1,999/- Nil
Rs.2000/- to Rs.2999/- Rs.20/-
Rs.3000/- to Rs.4,999/- Rs.30/-
Rs.5,000/- to Rs.7,499/- Rs.50/-
Rs.7,500/- to Rs.9,999 Rs.75/-
Rs.10,000/- to Rs.12,499/- Rs. 100/-
Rs.12,500/- to Rs.16,666/- Rs.125/-
Rs.16,667/- to Rs.20,833/- Rs.166/-
Rs.20,834/- and above Rs.208/-
Madhya Pradesh
upto Rs.3,333/- NIL
Rs.3,334/- to Rs.4,166/- Rs.30/-
Rs.4,167/- to Rs.5,000/- Rs.60/-
Rs.5,001/- to Rs.6,666/- Rs.90/-
Rs.6,667/- to Rs.8,333/- Rs.150/-
Rs.8334/- and above Rs.175/-
Maharashtra
upto Rs.5000/- Nil
Rs.5,001/- to Rs.10,000/- Rs.175/-
Rs.10,001/- and above Rs.200/-*
* Rs.300/- for the month of February
Meghalaya
upto Rs.4,166/- Nil
Rs.4,167/- to Rs.6,250/- Rs.16.50/-
Rs.6,251/- to Rs.8,333/- Rs.25/-
Rs.8,334/- to Rs.12,500/- Rs.41.50/-
Rs 12,501./- to Rs.-16,666 Rs.62.50/-
Rs.16,667/- to Rs.20,833/- Rs.33/-
Rs.20,834/- to Rs.25,000/- Rs.35/-
Rs.25,001/- and above Rs.38/-
Orissa
upto Rs.5000/- Nil
Rs.5,001/- to Rs.6,000/- Rs.30/-
Rs.6,001/- to Rs.8,000/- Rs.50/-
Rs.8,001/-to Rs.10,000/- Rs.75/-
Rs.10,001/- to Rs.15,000/- Rs.100/-
Rs.15,001/- to Rs.20,000/- Rs.150/-
Rs.20,001/- & above Rs.200/-
Tamil Nadu
upto Rs.3,500/- Nil
Rs.3501/- to Rs.5000/- Rs.16.50/-
Rs.5001/- to Rs.7500/- Rs.39/-
Rs.7501/- to Rs.10000/- Rs.85/-
Rs.10001/- to Rs.12500/- Rs.126.50/-
Rs.12501/- & above Rs.182.50/-
Tripura
upto Rs.2500/- Nil
Rs.2501/- to Rs.3500/- Rs.55/-
Rs.3501/- to Rs.4500/- Rs.85/-
Rs.4501/- to Rs.6500/- Rs.100/-
Rs.6501/- to Rs.10000/- Rs.140/-
Rs.10001/- and above Rs.180/-
West Bengal
upto Rs.5,000/- Nil
Rs.5,001/- to Rs.6,000/- Rs.40/-
Rs.6,001/- to Rs.7,000/- Rs.45/-
Rs.7,001/- to Rs.8,000/- Rs.50/-
Rs.8,001/- to Rs.9,000/- Rs.90/-
Rs.9,001/- to Rs.15,000/- Rs.110/-
Rs.15,001/- to Rs.25,000/- Rs.130/-
Rs.25,001/- to Rs.40,000/- Rs.150/-
Rs.40,001/- and above Rs.200/-

 

Aug 302012
 

Income Tax Exemptions under various sections :  Assessment Year 2013-14

Sr No

Section

Details of deductions

Limit

1 80C General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc

Maximum Rs 1 ,00,000 is allowed.

2 80CCC Deduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income. Maximum is Rs 1,00,000
3 80CCD Deduction in respect to contribution to new pension scheme. Employees of central and others are eligible. Maximum is sum of employer’s and employee’s contribution to the maximum : 10 % of salary.
5 80D Medical insurance on self, spouse , children or  parents Rs 15,000 for self , spouse & children
Extra Rs 15,000 for insurance on parents. IF parents are above 65 years, extra sum should be read as Rs 20,000
Thus maximum is Rs. 35,000 p.a.
6 80DD For maintenance including treatment or insurance of physical disable dependent relatives Rs 50,000 . In case disability is severe , the amount is Rs 1,00,000.
7 80DDB For medical treatment of self or relatives suffering from specified disease Acutal amount paid to the extent of Rs 40,000. In case of patient being Sr Citizen , amount is Rs 60,000
8 80E For interest payment on loan taken for higher studies for self or education of spouse or children Actual amount paid as interest and start from the financial year in which he /she starts paying interest and runs till the interest is paid in full.
9 80G Donations to charitable institution 100% or 50% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc. )
10 80GG For rent paid. This is only for people not getting any House Rent Allowance. Maximum is Rs 2000 per month.  Rule 11B is method of computation.
11 80GGA For donation to entities in scientific research or rural development. Only those tax payers who have no business income can claim this deduction .Maximum is equivalent to 100 % of donation.