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Gujarat Professional Tax

Gujarat Professional Tax

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


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


Individual/ Firms

Annual  Rate of Professional Tax


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


All private and Public Limited Companies, banking companies factory owners, Partnership Firms, etc.

Rs. 2,000


Individuals or professionals who have to pay separately in more than one branch

Rs. 2,000


Registered Dealers as per Gujarat Vat Act -2003 having their annual Turn Over.

 Not more than Rs.2,50,000/-


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.