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Assam Professional Tax

Assam Professional Tax

Assam Professional Tax

Professional tax is a tax charged by the State Governments on salaried individuals working in government or non-government establishments, and professionals like Chartered Accountants, Doctors, Lawyers, etc. carrying out some form of business. The regulations concerning it are applicable as per Clause (2) of Article 276 of the Indian Constitution. The rates of professional tax differ from one state to another, but the maximum amount of professional tax payment does not exceed Rs. 2500. The total amount of professional tax remitted in a year qualifies as a deduction under Income Tax. In this article, we look at the provisions relating to Assam Professional Tax in detail.

Law Governing the Assam Professional Tax

The Assam Tax on Professions, Trades, Callings and Employment Act, 1947 applies to the entire state of Assam. The government enacted it to levy tax on trades, professions, employment, and callings.

Who is Liable to Pay Professional tax in Assam?

All individuals who are involved in trading either by themselves or by a representative or an agent who partly or wholly belongs to the state of Assam are liable to pay Professional tax in Assam for every financial year.

The minimum tax rate amounts to ₹250 and the maximum rate is ₹2500 per annum.

Professional Tax Rates in Assam

Please refer to the attachment to know more about the Professional Tax Rates in Assam:

Assam Professional Tax

Procedure to Register for Professional Tax

According to the Assam Ease of Doing Business Act 2016, individuals or employers who are liable to pay Professional Tax for their employees under the Assam Professions, Trades, Callings and Employments Taxation Act 1947 must apply in Form I for online registration of professional tax in Assam. This form is available on the official website of the Government of Assam Commissionerate of Taxes.

Form I is attached here for reference:

Form I for online registration of professional tax in Assam

They need to submit the form manually to the jurisdictional authority for the purpose of application review. The assessing authority provides the registration in Form IA.

Applicants must provide or produce the documents mentioned below along with their registration form to apply for professional tax:

  • Wage or salary statement of employees
  • Photocopy of PAN Card
  • Photograph
  • Copy of Current bank account of the company or organization, or employer
  • Photocopy of rent agreement

All individuals who are liable to pay taxes under the Professional tax in Assam Act (apart from an individual earning wages or salary in respect of which the concerned employer pays the taxes) must obtain an enrolment certificate from the assessing authority. For this, they need to apply for Form II available on the official website of the Government of Assam Commissionerate of Taxes.

Form II

The assessing authority issues the enrolment certificate in Form IIA. Individuals should submit it manually to the office of the concerned authority.

In the Certificate of Enrolment or Registration Certificate, the assessing authority will mention the tax amount that is payable by the holder as per a particular date and schedule.

Procedure to Pay Professional Tax Online 

Individuals can avail of the online system for professional tax payment in Assam. They need to follow the steps mentioned below to carry out the procedure after visiting the official website of the Government of Assam Commissionerate of Taxes.

  • Navigate to Information & Services and click on the e-services and select the e-return/e-payment and log in using your user ID and password.
  • After logging in, navigate to e-payment e-GRAS and click on “Make Payment” (e-GRAS).
  • Fill in the form for e-payment with all required details like period of return, mobile number, amount, payment type, etc., and then select “Submit”.
  • Make the online payment for Professional tax in Assam and save or print the payment challan after paying.

Exemption from Professional Tax Payment

According to the provisions of Section 3 of the Assam Professions, Trade, Callings and Employment Taxation Act 1947, some classes of individuals notified by the State Government of Assam in the public interest and members of the Armed Forces of India are exempt from paying the Professional tax in Assam.

Thus, individuals searching for “Professional tax in Assam” must keep in mind the various facts mentioned above. One should ensure to calculate their taxes and be prepared in advance to avoid missing the due date or making hasty mistakes.