West Bengal Professional Tax

West Bengal Professional Tax

West Bengal Professional Tax

Professional tax is a State Government tax levied on the income received by way of employment, profession, calling or trade. The Municipal Corporations of the respective states impose professional tax through predetermined slab rates. Professional tax is paid on a monthly or annual basis. Moreover, it can be claimed as a deduction from the salary under Section 16 of the Income Tax Act.  Different states cover different rates and methods of collection for profession tax. In this article, we look at the details of West Bengal professional tax and its e-payment procedure.

To Know more about Professional Tax Registration and Compliance, Click here.

Eligibility

The West Bengal State Legislature passed the “West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979” for its citizens. The persons who are liable to pay Profession Tax under the act are divided into two categories.

  1. In case of salaried persons and wage earners, the employer (Public and Private Sectors, Government who distribute salary or wages to the employees) deducts the Profession Tax from the salary or wages and is liable to deposit the same with the State Government.
  2. For other categories of individuals, the person himself who has engaged in employment, profession, calling and trade is responsible for paying the tax.

Exemption from West Bengal Professional Tax

The State Government may exempt or reduce the payable tax for any class of persons by issuing notifications.

Currently, the members of the forces and the members of Indian Navy serving in any part of West Bengal are exempted from the payment of professional tax. The exemption also applies for any person drawing a pay or an allowance as Army or Air Force or Navy.

The members of auxiliary forces or reservists serving in any part of West Bengal and drawing pay and allowances as such auxiliary forces or reservists are exempted from payment of Profession Tax.

Salary and Wages

Any person earning salary or wages is liable to pay the professional tax. Salary and wages under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 are described below.

Salary and wages include the following.

  • Pay, Dearness Allowance and any other amount paid as allowance.
  • Remunerations received in cash or any other kind on regular basis.
  • Honorarium, perquisites and profit in lieu of salary
  • Leave encashment amount
  • Leave concessional pay, subsistence allowance.

Salary and wage does not include the following.

  • Medical reimbursement
  • Reimbursement of conveyance charges, traveling allowance
  • Salary paid to apprentice under Apprentices Act, stipend paid to trainee
  • Statutory bonus, gratuity, and ex-gratia payment.
  • Pension granted to an employee is not considered as salary. Therefore, a pensioner is not liable to pay Professional Tax on pension.

Requisites for West Bengal Professional Tax Payment

The self-employed person requires the Certificate of Enrolment, receipt of annual payment of tax, but does not require filing any of return.

An Employer requires Certificate of Registration, monthly payment of tax and filing of annual return.

West Bengal Professional Tax Slab Rate

The ‘Schedule’ of rates of tax as per West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 are provided in the table. The professional tax should be paid at the rates specified in the West Bengal Professional Tax Schedule.

S. NoClass of persons / IncomeRate of tax

 

 

1)

Employees earning monthly salary or wages—

(i) Not exceeding Rs.8,500

(ii) Above Rs.8,500 but not exceeding Rs. 10,000

(iii) Above Rs. 10,000 but not exceeding Rs. 15,000

(iv) Above Rs. 15,000 but not exceeding Rs. 25,000

(v) Above Rs.25,000 but not exceeding Rs.40,000

(vi) Above Rs.40,000

 

Nil,

Nil*

Rs.110 per month

Rs. 130 per month

Rs. 150 per month

Rs. 200 per month

2)

The annual gross income in the preceding year or part thereof of any persons engaged in any profession or calling but not engaged as an employee is –

(i) Not more than Rs. 60,000

(ii) Above Rs. 60,000 but not exceeding Rs. 72,000

(iii) Above Rs. 72,000 but not exceeding Rs. 84,000

(iv) Above Rs. 84,000 but not exceeding Rs. 96,000

(v) Above Rs. 96,000 but not exceeding Rs. 1,08,000

(vi) Above Rs. 1,08,000 but not exceeding Rs. 1,80,000

(vii) Above Rs. 1,80,000 but not exceeding Rs. 3,00,000 (viii) Above Rs. 3,00,000 but not exceeding Rs. 5,00,000

(ix) Above Rs. 5,00,000

 

 

Nil

Rs. 480 per annum

Rs. 540 per annum

Rs. 600 per annum

Rs. 1,080 per annum

Rs. 1,320 per annum

Rs. 1,560 per annum

Rs. 2,000 per annum

Rs. 2,500 per annum

3)

The annual gross turnover or annual gross receipt in the preceding year or part thereof of any persons engaged in any profession or trade that involves supply of goods or services or both is—

(i) Not more than Rs. 5,00,000

(ii) Above Rs. 5,00,000 but not exceeding Rs.7,50,000

(iii) Above Rs. 7,50,000 but not exceeding Rs.25,00,000 (iv) Above Rs. 25,00,000 but not exceeding Rs. 50,00,000 (v) Above Rs. 50,00,000

 

 

 

Nil

Rs. 300 per annum

Rs. 600 per annum

Rs. 1,200 per annum

Rs. 2,500 per annum

4)Persons who are engaged in any profession, trade, or calling in West Bengal.Rs. 2,500 per annum

 

Note: Any person covered in the entry 4 of the schedule is liable to pay the tax at the rate of Rs. 2,500 per annum irrespective of the gross turnover or gross receipts of such person.

In a case where a person falls under more than one entry in the Schedule, the highest rate of tax specified under the entries is applicable.

Enrollment

Every person who comes under entry number 2 to 4 of the “Schedule” attached to the Act should acquire an Enrolment Certificate within 90 days from the date of liability to pay tax. A person liable to pay tax should apply for enrolment. The concerned Deputy Commissioner / Profession Tax Officer will notify and determine the tax to be paid by an enrolled person if he or she fails to pay the due tax or pay less than the actual amount to be paid. If a person fails to apply for enrolment willfully within the prescribed days, a penalty of Rs.100 will be imposed for delay of each month or part of it. Besides, provision of punishment with simple imprisonment with or without fine is available for the said default.

Registration

Every employer (not being a Government officer) should apply and secure a Certificate of Registration to deduct the profession tax from the salary or wages payable to his employees. The tax must be deducted as per the slab mentioned in Serial No.1 of the Schedule. Such an employer should apply for registration online within 90 days from the date of liability. An employer who has more than one workplace within the jurisdiction of different authorities should make a separate application for registration. However, single registration for the whole of West Bengal may be allowed by the Commissioner of Profession Tax.  An employer failing to apply for registration within 90 days from the date of liability will be imposed a penalty of Rs 500 for the delay of each month or part of it.

Return Filing

All registered employers are required to submit the returns wherein an enrolled person is not required to file any returns.

 For late filing of Return, a late fee of Rs 200/- must be paid for the first month of default and Rs 100/- for each subsequent month. Non-submission of return is a punishable offence with simple imprisonment with or without fine.

Professional Tax Payment

Profession Tax can only be paid only through online portal of the Government of West Bengal.

  • The enrolled persons should pay the professional tax on or before July 31st of each financial year.
  • For registered employers, profession tax should be paid monthly.

Note: If an employer or an enrolled / un-enrolled person fails to pay tax within the due time, he or she will be liable to pay a simple interest @ 1% per month on due tax.

West Bengal Professional Tax e-Payment

The Directorate of Commercial Taxes under the  Government of West Bengal facilitates e-payment of Profession Tax for its citizens.

Step 1: To make the payment of professional tax online, visit the official website of West Bengal profession tax online portal.

Step 2: The home page appears. Under the e-Services menu, click e-Payment tab that redirects to another page.

West Bengal Professional Tax
West Bengal Professional Tax

Step 3: The e-Payment can be made through 4 options.

  1. Using Profession Tax Enrolment No (12-digit numeric)
  2. Using Profession Tax Registration No (12-digit numeric)
  3. Using Profession Tax Government ID (12-digit numeric)
  4. Using Application No for new Profession Tax Enrolment (11-digit numeric)

Note:  VAT No (11-digit numeric) can be used if the citizen forgets the enrolment or registration number.

Choose any one option and click submit to make necessary payment.

West Bengal Professional Tax- e-Payment
West Bengal Professional Tax- e-Payment

Check Payment Details

The status of payment made can be checked by entering the Government Receipt number (GRN) and clicking submit.

West Bengal Professional Tax- Check Payment Details
West Bengal Professional Tax- Check Payment Details

Penalties

The Profession Tax Act provides for imposition of penalty in different cases.

Some of such cases are: –

  • Willful failure to apply for enrolment /registration within prescribed time.
  • Intentionally providing false information in the application for registration/enrolment.
  • Failure to file return within the prescribed time.
  • Failure to pay tax within the prescribed time.
  • Willful failure to maintain books of accounts and records.

Prosecution

The West Bengal Profession Tax law provides for prosecution for certain offences. Such offences are bailable with simple imprisonment, fine, or both. The offences include:-

  • Failure to pay tax by an enrolled person.
  • Failure to furnish return by a registered employer.
  • Furnishing incorrect information in a return.
  • Refusal or negligence to provide information as required under the law.
  • Failure to produce and explain records and books of accounts for inspection as required by an authority under the law.

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