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, 1961. In this article, we look at the various aspects fo Gujarat 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 a month 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, notary, 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.	–
	i.             Not more than Rs.2,50,000/-	Nil
	ii.        Above Rs. 2,50,000/- up to Rs. 5,00,000/-	Rs. 500
	iii.            Above Rs. 5,00,000/- up to Rs. 10,00,000/-	Rs. 1250
	iv.            More than Rs.10,00,000/-	Rs. 2400

Professional Tax Return in Gujarat

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.

Application Procedure

Given below are the steps to pay professional tax online.

Step 1: Log on to the official website

The taxpayer has to log on to the official website.

Step 2: Click Online payment

The taxpayer has to click on ‘Online Payment’ option and select Professional Tax.

Step 3: Enter the PEC Number

The taxpayer has to enter the PEC number in the text box and click on Search option.

Step 4: Details of the Due Amount

Once the Search option is clicked, the due amount details are displayed on the screen.

Step 5: Click on the Check Box

The taxpayer has to click on the appropriate checkbox for which the payment has to be made. The total amount is displayed in the Amount Payable Section.

Step 6: Payment Method

The taxpayer has to select the payment method, net banking, debit or credit card.

Step 7: Click Confirm Button

After reading the terms and conditions, the taxpayer has to select the checkbox and then click on the Confirm button. By clicking on the confirm button, the taxpayer can proceed with the Online Payment process.

Net Banking Method

Step 1: Select Net Banking option

To remit the amount using net banking, the taxpayer has to select the payment mode as Net Banking and then press the Confirm button.

Step 2: Payment Process Confirmation Page appears

The payment process confirmation page appears with the transaction details. The details have to be verified and then click on the Proceed button.

Step 3: Net Banking Page

The taxpayer has to wait for sometime when it is redirected to the net banking page. During this process, he/she should not press the F5 key or refresh the page.

Step 4: Click on Make Payment

The taxpayer has to enter and verify the payment amount and then click on the Make Payment button.

Step 5: Transaction Status

After proceeding with the payment process, the Transaction Status is displayed on the screen. To receive a receipt, click on Print Receipt.

Debit/ Credit Card Banking

Step 1: Select Debit/ Credit Card Banking

To remit the amount using net banking, the taxpayer has to select the payment mode as Debit/ Credit Card Banking and then press the Confirm button.

Step 2: The Payment Process Confirmation

The payment process confirmation page appears with the transaction details. The taxpayer has to verify the details and press the COnfirm button.

Step 3: Select Visa/ Maestro Card

The taxpayer is directed to the Axis bank Visa/ Maestro Card page and then has to select Visa/ Maestro card.

Step 4: Click on Pay Now option

The taxpayer has to click on the Pay Now option. Once this option is clicked, the message ‘Your Payment has been approved’ displays on the screen.

Step 5: Print Receipt

Once the payment process is completed, the transaction status is displayed on the screen. Click on Print Receipt to receive a receipt of the payment.

Re-Printing the Receipt

To reprint the receipt, click on the Re-Print Receipt option from the menu and enter the VMSS transaction number and the PEC number. Then click on the ‘Check Status’ button. By clicking this button, the transaction status is displayed on the screen. Click on the Print Receipt to print the receipt.

View Payment History

Click on the ‘View Payment History’ option form the menu. Enter the PEC number and click on the Search button.

Know more about Maharashtra Professional Tax