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Professional Tax in Maharashtra

Professional Tax is a tax levied on the income earned by salaried employees and professionals, including chartered accountants, doctors and lawyers, etc. to the state government. Different states have varying methods of calculating professional tax. The professional tax, in Maharashtra, is regulated by the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975. The revenue collected is used towards the Employment Guarantee Scheme and the Employment Guarantee Fund.

Who Pays Professional Tax in Maharashtra?

Professional tax is to be paid by both salaried and self-employed individuals, who work in government or private organizations or any other modes of employment. It is subject to a minimum limit of earning and levied as per the state's applicable slab rates.

A few categories of individuals can claim exemption from paying professional tax.

They include

  • senior citizens who have completed 65 years of age,

  • parent of a mentally challenged child,

  • persons or parents of children suffering from physical disability

  • Physically handicapped persons with 40 % or more disability and

  • Badli workers in the textile industry.

How to Pay Professional Tax in Maharashtra?

Employers deduct professional tax, at prescribed rates, from the salary paid to employees, and pay it on their behalf to the State Government. Non-salaried individuals can either pay it to the government through local officials who are appointed to collect tax or via the online mode.

Professional Tax Slab Rates in Maharashtra

For Financial Year 2018-19

Monthly SalaryProfessional Tax Levied (Per month)
Up to Rs. 7,500Nil
Rs. 7,501 to Rs. 10,000Rs. 175
Above Rs. 10,000 Women who earn salary up to Rs. 10,000 per month are exempted from paying professional tax. (Rs. 200 for all months other than February) (Rs. 300 for the month of February)

Professional Tax in Maharashtra: Fines and Penalties

  • An employer will be charged a penalty of Rs. 5 per day for each day of not obtaining professional tax registration.

  • Late filing of professional tax return will attract a penalty of Rs. 1,000.

  • A penalty of 10% will apply in case of late payment of professional tax dues. Additionally, an interest on late payment can be levied at up to 1.25% per month.

Date of Payment of Maharashtra Professional Tax

The date of payment of professional tax will come down to the date of enrolment. In case of entities enrolling before the start of a year on or prior to 31st May, the due date for payment is 30th June. In case of enrolments post 31st May, professional tax needs to be paid within 30 days of the date of enrolment.

Frequently Asked Questions

Who pays professional tax?

Professional tax is a tax levied on the income earned by salaried employees and professionals, including chartered accountants, doctors and lawyers, etc. to the state government.

What is registration certificate and enrolment certificate?

Every employer who deducts and pays professional tax on behalf of his or her employees is handed a registration certificate. Every individual liable to pay profession tax, besides those whose professional tax is paid to the state government by their employer, receives an enrolment certificate.

Who are exempted from paying professional tax?

  • senior citizens who have completed 65 years of age
  • parent of a mentally challenged child
  • persons or parents of children suffering from physical disability
  • Badli workers in the textile industry
  • Physically handicapped persons with 40 % or more disability

What are the penalty rules pertaining to professional tax?

  • An employer will be charged a penalty of Rs. 5 per day for each day of not obtaining professional tax registration.
  • Late filing of professional tax return will attract a penalty of Rs. 1,000.
  • A penalty of 10% will apply in case of late payment of professional tax dues. Additionally, an interest on late payment can be levied at up to 1.25% per month.

How much is the professional tax levied in Maharashtra?

The professional tax applicable will depend on how much an individual earns. Below is the tax slab rate for financial year 2018-19:

Monthly SalaryProfessional Tax Levied (Per month)
Up to Rs. 7,500 Nil
Rs. 7,501 to Rs. 10,000Rs. 175
Above Rs. 10,000 Women who earn salary up to Rs. 10,000/- per month are exempted from paying professional tax Rs. 200 for all months other than February Rs. 300 for the month of February

Who is responsible for deducting the professional tax and depositing it with the government?

In case of salaried employees, the responsibility of deducting the tax and depositing it with the government is on the employer. For self-employed individuals, the tax needs to be paid by the individual himself/herself.

Besides Maharashtra, which are the other states where professional tax is imposed?

All states are levying professional tax; to name a few - Andhra Pradesh, Assam, Orissa, Karnataka, West Bengal, Tamil Nadu, Gujarat, Kerala, Chhattisgarh, Bihar and Madhya Pradesh.

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