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Maharashtra Professional Tax Limit Increased

Maharashtra Professional Tax Limit

Maharashtra Professional Tax Limit Increased

Maharashtra professional tax is levied by the  Government of Maharashtra on salaried individuals, working in Government or Non-Government entities or any profession including Chartered accounts and lawyers or persons carrying out some form of business. The professional tax rate is based on the income slabs set by the Government. The State Government has now increased the Maharashtra professional tax limit-wide notification No. PFT-2019/C.R.8/Taxation-3.  In this article, we look at the Maharashtra Professional Tax Limit in detail.

Maharashtra Professional Tax Rules

As per the notification, Maharashtra Government has conferred the power of leveling professional tax under the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules, 2019. As per this rule, it is essential for all employees who are drawing a salary to pay Maharashtra Professional Tax. The Maharashtra professional tax is to be paid to the respective treasury in which the company or firm is situated.

Maharashtra professional tax returns should be filed by those having Maharashtra professional tax registration. The total amount of the professional tax paid during the year is allowed as a deduction under the Income Tax Act

Eligibility Criteria

According to the Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975, then individuals (both self-employed and salaried) and corporate entities are liable to pay professional tax on their income.

Maharashtra Professional Tax Limit

The Maharashtra profession tax limit is explained in detail below:

Previous Maharashtra Professional Tax Limit

Entities/ individuals having a professional tax liability of more than Rs.50000 will have to file a monthly Maharastra professional tax return before the last date of each month. Entities having a professional tax liability of less than Rs.50000 in the previous year will have to file a tax return annually on or before the 31st of March.

Current Maharashtra Professional Tax Limit

According to the notification, those entities having a professional tax liability of more than Rs. 1,00,000 are required to file a monthly professional tax return before the last date of each month. Those entities are having a tax liability of less than Rs. 1,00000 in the previous year are required to file a tax return annually on or before the 31st of March.

Sl.No Periodicity Tax Liability Due Date
1 Yearly Professional Tax Liability is less than Rs 10,0000 31st March of the Financial Year
2 Monthly Professional Tax Liability is equal to or more than Rs 10,0000 The last date of the month to which the return to be paid

Maharashtra Professional Tax Rate

Income per Month

Tax Rate/Tax Amount (Per Month)

Up to Rs. 7,500 Nil (for male)
Up to Rs. 10,000 Nil (for female)
From Rs. 7,500 to Rs. 10,000 Rs. 175 (for males)
Rs. 10,000 onwards Rs. 200 for 11 months + Rs. 300 for 12th month

Notification No. PFT-2019/C.R.8/Taxation-3 is reproduced below for reference:

PT Rule Amendment 2019

Person Responsible to Deduct Professional Tax

  • Every employer other than an officer of the Government of India or Maharashtra Government is liable for deduction of the due amount of professional 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 picture and disbursing officer in the case of employees of the Government of Maharashtra 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.

Calculation of Salary for Professional Tax

The calculation of salary for Maharashtra Professional tax includes the primary, special allowance, dearness allowance, bonus, and extra income (arrears, leave surrender, etc. if any)

Payment of Maharashtra Professional Tax

Payment of Maharashtra professional tax is based on the date of enrolment.

Sl.No Class of Enrolled Person Due Date
1 The person who enrolled before the commencement of a year or before 31st May of a year 30th June of that year
2 The person who is enrolled after the 31st May of a year Within one month of the date of enrollment
3 The person who is enrolled and the rate of tax at which he/she is liable to pay tax are revised. Within one month of the date of the revision.

For entities enrolling before the commencement of a year on or before 31st May, the due date for payment is 30th June of the year. If enrolled after 31st May, Professional Tax payment is due within one month of the date of enrolment.

Profession Tax Enrollment Certificate

To pay Maharashtra Professional Tax, every employer needs to have a certificate of registration. Professional Tax Registration Certificate (PTRC) needs to be obtained by the company in the role of Employer. Professional Tax Enrollment certificate (PTEC) is to obtain by the company for its existence, and any subsidiary is engaging in the profession (and off-course business) within the state of Maharashtra.

The act provides the provision to levy a penalty if any entity which is liable to pay the profession tax fails to obtain the Profession Tax Registration Certificate enrollment certificate.

Procedure to Pay Maharashtra Profession Tax

  • Access the home page of the Maharashtra Government GST website. Click on ‘e-Payments’. Choose the option which is applicable as per the status of the professional tax payment.
  • Select TIN/PAN/TAN as appropriate and enter the corresponding number along with the captcha shown in the image.
  • Select the Act under which the applicant wants to make the payment. For professional tax, it should be either the PTRC Act or PTEC Act.
  • Provide other details like financial year, the period for which professional tax needs to be paid, location, amount and mobile number. Now, click on the ‘Proceed to Payment’ option.
  • The taxpayer can make the payment online using a credit card/debit card or net banking. On successful payment, an acknowledgment receipt will be generated which can download for further reference.

The taxpayer can obtain Maharashtra Professional Tax registration through IndiaFilings.

Maharastra Profession Tax Payment using GRAS

The Maharashtra Government has introduced the facility for the collection of Government receipts of various departments through the Government Receipt Accounting System (GRAS). The taxpayer can pay the professional tax using the GRAS facility.

  • Visit the Sales Tax Portal of the GRAS Website.
  • Select the type of tax for which payment has to be done.
  • Provide the correct TIN. For PTRC, provide the 12-digit TIN starting with 27 without the suffix P. For PTEC, furnish the 11-digit TIN. Click on Submit button.
  • Select the office location and furnish the mobile number. If the name of the employer or entity is not displayed, enter it manually.
  • Select the type of payment Form ID will be automatically populated. Select the payment period.
  • Enter the payment details like amount, payment mode, and the details of a bank. Enter the captcha value and then click on the ‘Proceed’ button.
  • The payment summary will be displayed. Click on OK to generate the Government Reference Number. By clicking on Ok, the taxpayer will be directed to the bank’s website.
  • After successful payment, an electronic receipt in the form of challan MTR 6 will be generated.