Tripura Professional Tax

Tripura Professional Tax

Tripura Professional Tax

Professional tax is a form of tax levied and collected by the state governments on every individual who earns their income through a profession or employment. This tax is levied on individuals based on the slab rates of various state governments. The amount payable is restricted to Rs. 2,500 and can be deducted under income-tax. In this article, we look at the Tripura Professional Tax in detail.

Scale of Levy

Professional taxes are levied in the states of  Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Orissa, Gujarat, Assam, Chattisgarh, Kerala, Meghalaya, Tripura, and Madhya Pradesh.

Deduction of Professional Tax

Professional taxes are deducted by the employee from an employee’s salary. The collected money has to be deposited to the respective governmental accounts within 30 days, along with the requisite proof.

Registration Forms

Given below are the forms that are essential to register a professional tax in Tripura:

  • Form I- for an employer.
  • Form-II- for a self-employed person.

Slab Rates for Tripura

Monthly Gross Income from

Monthly Gross Income Range up to

Amount

Remarks

0

Rs. 7,500

nil

Applicable to all Employees

Rs. 7,501

Rs. 15,000

Rs.150 per month

Applicable to all Employees

Above Rs. 15,000

 

 

Rs.208 per month

Applicable to all Employees

Not Specified (Any)

Not Specified (Any)

 

Rs.2500 per annum

Applicable to all Directors

Not Specified (Any)

 

Not Specified (Any)

 

Rs.2500 per annum

 

Applicable to Establishment or Employer Register under Tripura Shop and Establishment Act,1975 (other than directors but applicable for Company Contribution)

Exemption from Professional Tax

The following category of people are excluded from the ambit of professional tax:

  • An individual with a permanent physical disability.
  • Parents or guardians of children suffering from mental retardation.
  • Senior citizens above 65 years of age.
  • Parents and guardians responsible for children suffering from a physical disability.

Application Procedure

Step 1: Visit the Center

The applicant has to approach the Municipal Corporation.

Step 2: Obtain the application

He/she has to obtain the application form by paying the appropriate fee.

Step 3: Enter the Details

The applicant has to enter all the required details in the application form.

Step 4: Submit the application

Once all the details are entered, the applicant has to submit the application to the concerned officials.

Step 5: Collect the Challan

After remitting the fee in the fee counter, the applicant receives a challan from the officials. This challan can be used as a proof for remitting the professional tax.

Documents Required

Given below are the documents required to register for professional tax payment as an employer:

  • Memorandum Of Association and Incorporation Certificate
  • Articles Of Association
  • PAN Card
  • Lease Agreement
  • Shops and Establishment Registration Certificate / Trade License Copy

Due Dates

Every employer has to furnish a monthly return in Form VII within the last day of every month depicting the salaries and wages paid by him/her in the month immediately preceding the month of payment or deduction.

Penalties for Professional Tax Payment

  • If there’s a delay in obtaining a registration certificate, a penalty of Rs. 5 is applicable for each day of delay.
  • In cases of reluctance or delay in payment of professional tax, a penalty of 10% will be charged on the taxation amount.
  • For late filings of returns, a penalty of Rs. 300 per return will be imposed.

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