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.

Taxable Individuals

Every person carrying trade by himself or by an agent or representative who is wholly or partly within the state is liable to pay professional tax for each financial year. The minimum tax rate would be Rs. 250 and the maximum rate would be Rs. 2500 per annum.

Deduction of Professional Tax

Professional taxes are deducted from salaried employees by deducting a portion of their salaries. This deducted fund is paid to the State Government. When an individual is self-employed or in cases where an individual does not have an employee, professional taxes have to be paid by the concerned individual. Non-employees can register for professional tax by applying through a form. Upon verification, the registration number is issued to the applicant. The individual can use this registration number to pay professional taxes in various banks.

Calculation of Professional Tax

Professional taxes are calculated based on the gross salary and tax slab prescribed by the Government. In India, only 15 states have included the tax system under uts ambit.

Income Tax Slab Rates

The Income Tax Slab Rates for Assam are as follows.

Monthly Salary

Amount Payable per Month

 

Less than  Rs. 10,000

Nil

Rs. 10,001 to Rs. 15,000

Rs. 150

Rs. 15,001 to Rs. 24,999

Rs. 180

More than Rs. 25,000

Rs. 208

Registration Procedure

Here are the steps to register for Professional Tax in Assam:

Step 1: Log on to the official website

The taxpayer has to log on to the official website of Assam.

Step 2: Click on Online Registration

By clicking on the e-Services tab, a drop down box appears. The taxpayer has to click on the ‘Online Registration’ option.

Step 3: Select Professional Tax

Under the list of acts, the taxpayer has to select ‘Professional Tax.’

Step 4: Select District and Location 

The taxpayer has to click on the appropriate district and location. Once selecting, the ‘Submit’ button must be selected.

Step 5: Application Form

After clicking the ‘Submit’ option, the application form for registration appears on the screen.

Step 6: Enter the Details

The applicant has to enter the required details in the application form.

Step 7: Generation of Acknowledgement Form

An acknowledgement number will be generated after the application form is filled and submitted.

Step 8: Print the Receipt

A print receipt of the acknowledgement form can be obtained by clicking on the ‘Print’ option.

Administration Process

Once the application form is submitted, the following steps are carried by the concerned department.

Step 1: Sending the request

The registration request is sent to the Assistant Commissioner of Taxes or to the Superintendent of Taxes Incharge.

Step 2: Appointing Circle Incharge

The concerned officer assigns the respective circle to review the application. The Circle Incharge verifies the complete registration request and processes the application form.

Step 3: Processing the Application

Processing the application includes remarks such as order enquiry, order security hearing for new registration. He/she may also directly choose the option of final approval of the registration.

Step 4: Generation of Registration Number

On completion of the above procedures, the registration number is generated.

Exemptions for Professional Tax

Professional Taxes are not applicable to the following categories of people:

  • An individual who have completed 60 years of age.
  • An individual suffering from 40% or more of permanent physical disability or blindness.
  • Parent or guardian of a child who is physically or mentally challenged.

Penalty Applicable for Professional Tax

  • In case of a delay in receiving the registration certificate; an employer will be forced to remit a penalty of Rs. 5  for each day of delay, and a self-employed person will be incurred with a penalty of Rs. 2.
  • If there is a delay in payment, a penalty of 2% per month will be levied. In addition to this, if there is a non-payment of such taxes, an additional 10% would be levied on the taxation amount.
  • If there is a delay in filing the returns, a penalty of Rs. 1,000 will be charged if the returns are filed within a month after the due date. If it is not paid within a month, a penalty of Rs. 2,000 has to be paid.
  • If an individual has provided false or incorrect information at the time of enrolment, a penalty amounting to three times of the professional tax will be charged.

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