PROFESSIONAL TAX

Profession Tax is levied on the Income of a person earned by way of profession, trade, calling and/or employment even though the tax payer may already be paying Income tax. The difference between Income tax and Profession tax is that Profession tax is levied and collected by the State Government whereas Income tax is levied by the Central Government.

Another important point is that not all States levy profession tax. Where it is so levied, it is determined as per the slab applicable on the assessee. The slabs differ for each State. However Profession tax collected by any person cannot exceed Rs. 2500 p.a.

Any amount paid as profession tax is allowed as a deduction from ‘Salary’ in Form 16 while computing Income chargeable for Income Tax purposes.

In case of Salaried/Wage earners, responsibility of deducting and paying Professional Tax to the Government is on Employer. In case of others, the responsibility for payment of professional tax is on the tax payer itself.

Every person liable to pay Professional tax should get himself registered with the prescribed authority in the prescribed form.

Payment on challan MTR-6 Monthly (Liability greater than equal to Rs. 50000)

Return should be submitted in Form IIIB Monthly (Liability greater than equal to Rs. 50000)

For more…      PT Slab Rates    E-payment/Filling of Return         Maharashtra PT