Chhattisgarh Professional Tax
Chhattisgarh Professional Tax
Chhattisgarh professional tax is levied by the Government on salaried individuals, working in Government or Non-Government entities or of any profession, including Chartered Accounts and Lawyers or persons carrying out some form of business. Chhattisgarh Government has conferred the power of leveling professional tax under the Chhattisgarh Professional Tax Rules, 1995. The professional tax rates are based on the income slabs set by the State Government. The total amount of the professional tax paid during the year is allowed as a deduction under the Income Tax Act. In this article, we look at the Chhattisgarh Professional Tax in detail.
Chhattisgarh Professional Tax Rules
Chhattisgarh Professional Tax Rules are also known as Chhattisgarh Vritti Kar Adhiniyam, 1995. As per this rule, it is essential for all employees who are drawing a salary to pay Chhattisgarh Professional Tax. This form of tax is to be paid to the respective treasury in which the company or firm is situated.
Person Responsible To Deduct Professional Tax
- Every employer other than an officer of the Central Government or Chhattisgarh Government is liable for deduction of the due amount of tax from the salary or wages of the employee.
- In the case of an employee of the Central Government or a State Government, the drawing and disbursing officer will be responsible for the deduction of the amount of tax payable from the pay bill of the employee.
- The drawing and disbursing officer in the case of employees of the Government of Chhattisgarh will deduct the tax from the salaries or wages of the employees in the pay bills.
- The drawing and disbursing officer of the Central Government or any other State Government will deduct in cash the tax while disbursing salaries or wages to the employees.
The Rate of Chhattisgarh Professional Tax
- The employer will deduct every month from the salaries or wages of employees an amount equal to 1/12 of the tax payable by each employee for the relevant year.
- The drawing and disbursing will be made deduction every month from the salaries or wages payable to the employees and the amount of professional tax to be so deducted in each month will be equal to 1/12 of the amount of tax payable by the employee for the relevant year.
Calculation of Salary for Professional Tax
The calculation of salary for Chhattisgarh Professional tax includes the primary, special allowance, dearness allowance, bonus, and extra income (arrears, leave surrender, etc. if any).
Professional Tax Slab in Chattishgarh
|Class of Taxpayers (Salary and Wage Earners Per Annum)||Payable Tax Rate (Per Annum)|
|Earning a salary up to ₹ 40,000||Nil|
|Earning a salary between ₹ 40,000 to ₹ 50,000||₹ 360|
|Earning a salary between ₹ 50,000 to ₹ 60,000||₹ 720|
|Earning a salary between ₹ 60,000 to ₹ 80,000||₹ 1,080|
|Earning a salary between ₹ 80,000 to ₹ 1,00,000||₹ 1,200|
|Earning a salary between ₹ 1,00,000 to ₹ 1,50,000||₹ 1,440|
|Earning a salary between ₹ 1,50,000 to ₹ 2,00,000||₹ 1,800|
|Earning a salary between ₹ 2,00,000 to ₹ 2,50,000||₹ 2,160|
|Earning a salary between ₹ 2,50,000 to ₹ 3,00,000||₹ 2,280|
|Earning a salary above ₹ 3,00,000||₹ 2,400|
Profession Tax Certificate of Registration
To pay Chhattisgarh Professional Tax, every employer needs to have a certificate of registration. To get the certificate of registration to follow the procedure explained below:
Approach Profession Tax Assessing Authority
Step 1: The employer has to submit an application in the prescribed format to the Profession Tax Assessing Authority in whose jurisdiction the company/firm is situated.
Submit an Application
Step 2: If an employer has more than one place of work within Chhattisgarh, he/she will make a single application in respect of all such places declaring one of the principal places of work and others as additional places of work.
We have here with attached an application for obtaining a certificate of registration under this act:Application for registration (for employers)
Step 3: If a person has more than one place of work within Chhattisgarh, he/she needs to furnish a single application in respect of all such places, declaring that one of the principal places of work and others as additional places of work.
We have here with attached an application for obtaining a certificate of registration for this case:Application for certificate of registration (for Person)
Issue of Certificate of Registration
On receipt of a request for a certificate of registration, the Profession Tax Assessing Authority if satisfied that the information furnished is correct and the required particulars have been provided, grant a certificate of registration
Note: If the Profession Tax Assessing Authority finds that the application is not in order or that all required particulars have not been furnished, he/she will direct the applicant to furnish the additional information. After considering the additional information provided, the Profession Tax Assessing Authority will grant a certificate of registration.
Amendment of a Certificate of Registration
If an employer or a person holding a certificate of registration desires it to be amended, he/she will have to apply to the Profession Tax Assessing Authority specifically stating the amendments desired with reasons together with the certificate of registration. After verification, the authority will amend the certificate of registration.
Exhibition of Certificate of Registration
The employer or the person holding this certificate of registration has to display conspicuously at his/her place of work the certificate of registration or a copy issued by the Profession Tax Assessing Authority.
Duplicate Copy of the Certificate
If a certificate of registration granted under this rule is lost, destroyed or defaced or becomes illegible, the holder of the certificate has to apply for a duplicate copy of the certificate. After verification, the Professional Tax Authority will issue a copy of the original certificate after stamping as “Duplicate Copy”.
The certificate has to be furnished by a person to his employer in prescribed Format as given below:Certificate to be furnished by person to his employer
Payment of Chhattisgarh Professional Tax
- Every employer other than the Chhattisgarh Government and every person will have to pay the amount of professional tax, penalty or any other amount due from or imposed upon him directly to the treasury.
- Non -payment of Chhattisgarh professional tax will be not accepted by the concerned profession tax assessing authority or any other Authority appointed under the Act.
The professional tax needs to be made by challan in the prescribed format to the head 028-other taxes on income and Expenditure B- Taxes on professions, trade, callings and employment. The challan will be in quadruplicate.
Return Filing by Employer
The procedure to file Return by the employer is explained in detail below:
Every employer registered under Chhattisgarh Professional Tax Act have to furnish the return in a prescribed format for each quarter on or before the fifteenth day of the month in which such returns are showing the salaries and wages paid by him/her and the amount of professional tax deducted by him/her from the said salaries and wages.Return (for employer)
Note: Quarter means three months commencing from 1st April, 1st July, 1st October and 1st January.
- Every employer has to submit the return for every quarter by the due date even if no professional tax is payable by the person in his employment.
- Every return to being provided under this rule will have to be accompanied by receipted challan in token of the payment of the tax payable by the employer.
An employer registered under this Act need to get permission from the Profession Tax Commissioner for submitting an annual return. The application form for professional tax annual return is given here:Application for permission to furnish return for a year
Register to be maintained
Every employer responsible for deducting and paying Chhattisgarh Professional tax needs to maintain a record in which the amounts of wages and salary paid to each of the persons in his/her employment and the amount deducted from the wages or salary of the employee on account of tax have to be entered.
Return Filing by Person
The registered person required to furnish return will have to apply to the concerned profession tax assessing authority along with a copy of challan in proof of payment of Chattisgarh professional tax payable according to such return.Return (for persons)
Verification of Return by Profession Tax Assessing Authority
- In the first week of a month, the Profession Tax Assessing Authority will prepare a statement in a prescribed format and forward it to the Treasury Officer concerned for verification.
- If any discrepancy is discovered on audit, the Profession Tax Assessing Authority will send the necessary records to the Treasury Officer for a reconciliation of accounts.
Refund of Professional Tax
If the Profession Tax Assessing Authority is satisfied that a refund of any amount of professional tax or penalty is due either because of excess payment or the order of the appellate or any other court, if the employer or person desires payment in cash, it will issue to him a refund payment
- The Profession Tax Assessing Authority is issuing the refund payment order will intimate the numbers of the books in use for the time being to the Treasury Officer within his jurisdiction
In case you require any assistance for registering Professional Tax in Chhattisgarh get in touch with an IndiaFilings Advisor at [email protected].