As per Clause 2 of Article 276 of the Indian Constitution, the state governments of India have the sole authority to impose a professional tax. Individuals earning from professions like trade, calling, employment in other business firms, doctors, lawyers, etc., are liable to pay this tax. In this article we will learn about professional tax in Assam.
The Assam state government imposed a professional tax on every salaried employee working in government and private sectors and self-employed individuals in any business or profession, such as doctors, engineers, lawyers, chartered accountants, freelance professionals, etc. Those working in Assam must pay professional tax according to the applicable income slab and professional tax rate.
Employers deduct professional tax from employees' salaries every month, and self-employed people deposit professional tax annually. However, professional tax paid by salaried employees can be claimed as a deduction under the old income tax regime while filing an ITR. The professional tax amount in Assam ranges between Rs.2,160-2,500 per annum..
Professional tax in Assam came into force after the enactment of the Assam Tax on Professions, Trades, Callings, and Employment Act of 1947. The commercial tax department of Assam collects this tax from individuals trading in Assam by themselves or through an agent. You are liable to pay this tax if you earn from calling or any other employment type. As per the Assam professional tax rule, PT is applicable for individuals who belong to the state wholly or partially.
Take a look at the list below to know the individuals eligible to pay professional tax in Assam:
The revised professional tax slab rate in Assam, effective from 1st April 2025, is categorised as per the class of employment of the individuals. Based on this, individuals are classified into 9 different classes. The tables below discuss the professional tax slab rate of a few individual classes:
Monthly Salary or Wage | Tax Slab Rate |
Up to Rs.15,000 | Nil |
Rs.15,001 to Rs.25,000 | Rs.180 per month |
Above Rs.25,001 | Rs.208 per month |
Annual Gross Income | Tax Slab Rate |
Up to Rs.1,20,000 | Not Applicable |
Rs.1,20,001 to Rs. 1,80,000 | Rs.1,800 p.a. |
Rs.1,80,001 to Rs. 3,00,000 | Rs.2160 p.a. |
Rs.3,00,001 and above | Rs.2500 p.a. |
Enrollment tax depends on various parameters such as annual income, type of profession, etc. Click here to learn more.
Assam Ease of Doing Business Act 2016 states that individuals opting for online payment while paying professional tax need to fill out Form I. You can follow these steps for the online registration process:
Step-1: Log in to the official website of the Government of Assam Commissionerate of Taxes.
Step-2: Search ‘Information & Services’, select ‘e-services’ and then ‘e-payment’.
Step-3: Enter your ID and password to log in.
Step-4: Search for e-payment e-GRAS.
Step-5: Click on ‘Make Payment’.
Step-6: Fill up the form with professional and personal details as required.
Step-7: Complete your payment for professional tax in Assam.
Step-8: Print the payment challan after completing the payment procedure.
The due date for filing professional tax varies according to the enrolment date in Assam. If you enrolled on or before May 31 before the year commences, your due date will be June 30 of that year. However, for enrolment after May 31, you need to pay the PT within a month of the enrolment date.
The Government of Assam charges a monthly 2% penalty for late professional tax payments. In case no payments are made, you may have to pay a hefty penalty of double your total payable professional tax in Assam.
As per the Assam Professions, Trade, Vocation, and Employment Taxation Act 1947, some individual classes are exempted from professional tax payments. Sec-3 states that the following individuals enjoy tax exemption:
Category of Assessee | Application Form |
Application for Certificate of Registration / Amendment of Certificate of Registration | Form I |
Certificate of Registration | Form IA |
Application for a Certificate of Enrolment / Amendment of Certificate of Enrolment | Form II |
Certificate of Enrolment | Form IIA |
Return to be filed by employer | Form |
Challan for making Payment | Form VII C |
Thus, every responsible individual earning a minimum salary of Rs 15,001 is eligible for paying professional tax in Assam. However, the minimum amount of tax payable varies according to the income slab. So, you need to go through the tax rates as per your employment type and pay accordingly.