Salaried, self-employed individuals, and companies in Maharashtra are levied with professional taxes on their income from several sources. The professional tax slab rates are revised every fiscal year and can be paid online by non-salaried persons.
Professional Tax in Maharashtra
Like other states in India, the Government of Maharashtra also levies professional charges on the income earn from various sources. Professionals working in government or non-government sectors, doctors, lawyers, chartered accountant- they all are responsible for paying professional tax in Maharashtra and get a certificate of Certificate of Enrolment from the concerned authority. Professional Tax in Maharashtra is handled by the Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975 which came into effect on 1st April 1975. As per this act, professional tax is applicable for both individuals and companies.
Who pays professional tax in Maharashtra?
Professional tax are applicable for both salaried and self-employed professionals who earn income working in government and private organizations and any other modes of employment. Professional tax is subject to a minimum limit of income and charged as per applicable slab rates of a state. Senior citizens above the age of 65 and handicapped persons with more than 40 % disability and parent of a physically disabled and mentally retarded children are exempted from paying professional tax in Maharashtra.
How to pay Professional Tax in Maharashtra
In case of salaried professionals, professional tax is deducted by employers. They deduct it and deposit the total amount with the municipal corporation. Non-salaried individuals can pay it directly to the government via local officials appointed to collect tax. Also, they can pay it online.
Professional Tax Slab Rates in Maharashtra 2020-21
The states in India revise their professional tax rates for every financial year. Likewise, the Government of Maharashtra of also revised its professional tax slab rates for the financial year 2020-21. Mentioned below are the professional tax slab rates applicable for salaried and self-employed professionals in Maharashtra.
|Monthly Gross Salary||Amount Payable as Professional Tax|
|Up to Rs.7500||Nil|
|Rs. 7,501 to Rs.10000||Rs. 175 per month|
|Above Rs. 10000||
Rs. 2,500 p.a. The amount is can be paid in the following manner:
The State Government of Maharashtra also implemented a special privilege for women professionals. As per the provision, women employees who earn up to Rs.10,000 per month will not be required to pay professional tax on their salary. This exemption was put into effect in the financial year 2015-2016.
Professional Tax in Maharashtra Penalty:
The Maharashtra Government charges penalty under the following circumstances:
- Delay in enrolling for professional tax
- Providing inaccurate information while enrolling for professional tax.
- Failure to pay professional tax within due date.
Professional Tax in India:
Professional Tax is a kind of tax charged by various State Governments. The tax is charged on the income earned by individuals who are engaged in various professions. Professional tax came into existence in 1949 when the government of India entrusted the responsibility of collecting professional tax to the states as per the Article 276, Clause 2 of the Indian Constitution. Professional tax is almost similar with Income Tax. The only difference is professional tax is charged by the State Government while Income Tax is charged by the Central Government.
Initially, at the time of introduction, Rs. 250 was determined as professional tax. Later on the amount was increased to Rs. 2500 in 1998. Over the past few years, the state government has been trying to raise the amount of professional tax form Rs. 2500 to Rs.7000. However, so far the government of India has not raised the amount and maximum amount of it remains the same.
Frequently Asked Questions on Maharashtra Professional Tax
- Who should pay profession tax?
- Do those who have to pay profession tax fall in certain categories?
- What do you mean by registration certificate and enrolment certificate?
- Where do I make an application for an enrolment certificate and registration certificate?
- Are there any penalties for submitting incorrect information?
All persons who engage partly or actively in any kind of trade, employment, profession or callings, or come under any class referred to in Column 2 of Schedule I of the Professional Tax Act should pay profession tax.
Yes, there are certain categories under which those who are liable to pay profession tax fall. These categories include individuals, firms, corporations, Hindu Undivided Families, companies, societies, associations and clubs are liable to pay profession tax.
Employers who are liable to subtract and pay profession tax on their employees’ behalf, apart from government officers, are given registration certificates. All persons who are mandated to pay this tax, apart from those whose profession tax is paid by their employers, are given enrolment certificates.
The relevant registration authority must be contacted for enrolment certificate or registration certificate, at Vikrikar Bhavan, Mazgaon, in case you reside in Mumbai, or at the closest district Sales Tax office in case you reside outside Mumbai.
Under Section 5(6) of the Profession Tax Act, the penalty for providing wrong information when applying for an enrolment certificate or a registration certificate is 3x the actual tax payable.