IndiaFilings / Learn / Business Startup / Professional Tax In Manipur
Professional Tax in Manipur - Applicability - IndiaFilings

Professional Tax in Manipur

Professional tax is a form of taxation imposed on the income-earning residents of India's states. The task of implementing this tax system is vested with the respective state governments, which explains the rationale behind the differences in tax rates between the states. The amount deposited by the taxpayer under this provision qualifies for deduction under the Income Tax Act. This article looks at the various aspects of Professional Tax in Manipur. Know more about the Professional Tax Registration and Compliance

Methodology and Purpose of Implementation

Professional taxes are imposed by the Municipal Corporations of the concerned state governments to garner revenues for infrastructural development and other welfare measures. The tax rates, as already previewed, vary from state to state. However, the maximum quantum of the levy is affixed at Rs. 2,500. The tax rate is generally calculated based on the salary of the taxpayer. Professional tax is primarily governed by Article 276 of the Indian constitution. Provisions for the same in the State of Manipur are implemented following The Manipur Professions, Trades, Callings, and Employments Act of 1981. It is noteworthy that the state governments may choose to formulate laws about the Concurrent and State list, while the formulation of regulations about the Union list is entirely vested with the Parliament. Article 276, quoted for your reference: Article 276 of the Constitution of India states that "there shall be levied and collected a tax on professions, trades, callings, and employments, following the provisions of this Act. Every person engaged in any profession, trade, calling, or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time."

Payment Responsibilities

In the realms of professional tax, the onus of tax payments is vested with the following categories of persons:
  • Employers
  • Self-employed professionals.
According to this provision, employers are mandated to don the employees' gloves and remit tax payments on their behalf after deducting the portion of liability from their salaries. To fulfill this obligation, employers must apply for and receive the Certificate of Registration and Enrollment. The registration norms stipulate that separate registrations must be obtained for every stage of business operation, whether or not it is a part of the same entity. Employers who have attained the status of designated authorities may remit their payments to the treasury through banking means. The likes of others may do so at a venue decided by the designated authorities. As for the timeline of payment, employers with more than 20 employees must sort out their liabilities within 15 days from the end of the month, and those with less than 20 employees at their disposal may do the same every quarter; which to precisely state the 15th of the following month from the end of the quarter. Residents who aren't salary earners but are recipients of income through other sources are necessitated to make their tax payments. Note: These tax remittances should be followed by the filing of returns, which is to be pursued by both categories of taxpayers.

Registration

As already emphasized, employers must obtain a Certificate of Registration and a Certificate of Enrollment to facilitate deducting tax from the employee's salary. While the former needs to be obtained immediately, the document concerning enrolment must be received within 30 days of the enterprise's establishment date.

Exemptions

Professional tax isn't applicable for:
  • Taxpayers above the age of 65.
  • A physically challenged person with 40% permanent physical disability or blindness.
  • Parent or guardian of a child who is physically challenged or mentally retarded.
  • Foreigners employed in an Indian company.

Documents Required

The following documents must be produced while applying for the Certificate of Registration:
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • PAN Card
  • Proof of Identity
  • Proof of Address
  • Lease Agreement

Rates Prevalent in Manipur

The State Government of Manipur has come up with the following rates of tax levy:
Salary Earned Amount of Levy
Up to 50000 Nil
Between 50001 To 75000 Rs.1200
Between 75001 To 100000 Rs. 2000
Between 100001 To 125000 Rs. 2400
Above 125001 Rs. 2500

Penal Provisions

The Indian tax laws are not known for their leniency when dealing with defaults, considering that tampering with tax payments deprives the government of its primary source of revenue. In this respect, non-compliance with this provision results in the following consequences:
  • Delay in obtaining the Registration Certificate – Rs. five for every day of delay (for an employer), and Rs. two for every day of delay (for employees).
  • Non-payment or delayed professional tax payment - a penalty of 2% per month (to be calculated from the total outstanding). Non-payment for a specific period may attract a penalty of 10% of the total tax due.
  • Incorrect or false information – three times the actual tax payable.
SREERAM VISWANATH K
Updated on: October 17th, 2022

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...