Gujarat Professional Tax

A tax that is levied on employees and on those people carrying out a professional trade in India is called a

Professional tax. The maximum amount that is levied as Professional tax on a person is Rs. 2,500 per year and the amount is remitted to the concerned State Government. The total amount of professional tax paid in a year qualifies for deduction according to the Income Tax Act, of 1961. In this article, we look at the various aspects of Gujarat's professional tax in detail.

Payment of Professional Tax

Payment of Professional tax depends on the salary and the professional tax slab rates set by the state. The amount is deducted by the owner of the company or business, from the employee's salary or income. The collected fund is paid to the State Government.

Registration of Professional Tax in Gujarat

The taxpayer has to apply for the Registration certificate to the concerned department of the state. his procedure has to be completed within 30 days of employing staff for their business. A separate application has to be made if the individual has more than one business.

Depositing the Tax Amount Deducted

If an employer has employed above 20 employees, the payment should have been made within 15 days from the month's end. However, if an employer has below 20 employees, the payment can be done on a quarterly basis.

Documents Required

Proof stating the commencing date of the business
Accounting records
Employees details
Details of paid salaries
Address proof

Gujarat Professional Tax Slab Rates

Monthly Income of Taxpayer	Professional Tax Amount Payable
For employees earning a salary up to Rs. 5,999	Nil
For employees earning between Rs. 6,000 to Rs. 8,999	Rs. 80
For employees earning between Rs.9,000 to Rs. 11,999	Rs. 150
For employees earning more than Rs. 12,000	Rs. 200

Professional Tax Rate for Individuals and Firms

S.No.	Individual/ Firms	Annual Rate of Professional Tax
1	All advocates, solicitors, notaries, doctors, consultants, architects, engineers, Chartered Accountant, insurance agents, contractors, brokers, tour and travel operators, advertising agencies, cable TV operators, tuitions and tutorial institutions, angadia, couriers, health and recreation clubs, share brokers, petrol pump owners, transporters, money lenders, video parlor, RTO agents, Co-operative Society, etc. and all types of professional as per the Finance Department notification dated on 01.04.2008.	Rs. 2,000
2	All private and Public Limited Companies, banking companies factory owners, Partnership Firms, etc.	Rs. 2,000
3	Individuals or professionals who have to pay separately in more than one branch	Rs. 2,000
4	Registered Dealers as per Gujarat Vat Act -2003 having their annual Turn Over.	-
	Not more than Rs.2,50,000/-	Nil
	Above Rs. 2,50,000/- up to Rs. 5,00,000/-	Rs. 500
	Above Rs. 5,00,000/- up to Rs. 10,00,000/-	Rs. 1250
	More than Rs.10,00,000/-	Rs. 2400

Professional Tax Return in Gujarat

The professional tax return has to be filed within 15 days of the expiry date of the previous month. A taxpayer can also apply for an annual return. However, it will be finalized by the tax authority. If there are below 20 employees in a company, the employer can file the return every year. The filing should be made within 15 days from the expiry of the previous year.

Interest on late payment

All late payment of professional tax is charged with a yearly interest of 18%. In addition to the interest, the taxpayer is charged with a penalty.

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Frequently Asked Questions

Common questions about Gujarat Professional Tax Details and Compliance Insights.

Professional Tax is a tax levied on employees and individuals carrying out a professional trade in India. It is remitted to the respective State Government, and the total amount paid in a year qualifies for deduction under the Income Tax Act, 1961.

The Professional Tax is deducted by the employer from the employee's salary or income. The employer is responsible for collecting and depositing the tax amount to the State Government.

The taxpayer has to apply for a Registration Certificate to the concerned department of the state within 30 days of employing staff for their business. A separate application is required for each business owned by an individual.

If an employer has more than 20 employees, the deducted tax should be deposited within 15 days from the end of the month. For employers with less than 20 employees, the payment can be made quarterly.

The documents required include proof of the business commencement date, accounting records, employee details, details of paid salaries, and address proof.

Yes, the maximum amount that can be levied as Professional Tax in Gujarat is Rs. 2,500 per year.

The Professional Tax slab for employees in Gujarat is based on their monthly income. For example, employees earning up to Rs. 5,999 are exempt, while those earning more than Rs. 12,000 pay Rs. 200 per month.

Individuals and firms such as advocates, consultants, architects, and others pay an annual Professional Tax of Rs. 2,000. Private and public limited companies, banking companies, and partnerships also pay Rs. 2,000 annually.

The Professional Tax return should be filed within 15 days of the expiry date of the previous month. For employers with less than 20 employees, an annual return can be filed within 15 days from the end of the previous year.

Late payment of Professional Tax in Gujarat is charged with an annual interest of 18%, in addition to a penalty amount.