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Professional Tax Gujarat: Tax Slab, Payment, Applicability, Login, Due Date, Exemption

By Ektha Surana

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Updated on: May 23rd, 2024

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13 min read

In India, not every individual is aware of professional tax. The Indian constitution grants each state the authority to levy and collect professional tax from various taxpayer categories. The professional tax laws, regulations, and procedures vary from state to state. As of now, only 17 states in India levy professional tax, and Gujarat is one of them. 

In this article, we will talk about the professional tax in Gujarat and other related information

Professional Tax in Gujarat

The state government of Gujarat imposes a professional tax on self-employed individuals and employees who earn their living through trades, callings or other types of professions.

In Gujarat, the professional tax is payable quarterly and monthly.

 Professional Tax in Gujarat: Due dates

Number of employees in the Company

Frequency

Due Date

Less than 20 employees

Monthly

Within 15 days of the end of the month

More than 20 employees

Quarterly

Within 15 days from the end of the previous quarter

Following are the quarterly due dates for Professional Tax in Gujarat:

  • July 15 (for the quarter from April to July)
  • October 15 (for the quarter from July to September)
  • January 15 (for the quarter from October to December)
  • April 15 (for the quarter from January to March).

If professional tax is not paid, interest at the rate of 18% per annum, calculated daily, shall be levied.

Gujarat Professional Tax Act

The Gujarat State Tax on Professions, Trades, Callings and Employment Act 1976 was enacted to impose a tax on individuals associated with various types of professions, employment, trades, and callings. The state government imposes this tax for the benefit of municipalities, municipal corporations, panchayats, and, of course, the state. Different municipal corporations in Gujarat are responsible for collecting this tax.

Professional Tax Applicability in Gujarat

If a person is involved in any profession, trade, vocation or employment and falls into any of the classes listed in column 2 of Schedule 1, then he/she is required to pay this tax to the designated authority in accordance with the income tax slab rate. The amount that can be levied and collected from any taxpayer annually varies from Rs. 1250 to Rs 2500.

If you are a salaried employee, your employer will deduct this professional tax from your salary or taxable income. Whereas, if you are self-employed, you are liable to pay this tax on your own to the state government of Gujarat.

List Of Documents For Registration

  • Memorandum Of Association & Articles Of Association
  • PAN Card
  • Lease Agreement
  • Two Passport size photo of owner
  • LWF paid receipt
  • Company PAN card copy
  • Canceled Letterhead
  • Authorisation letter

All documents with stamp and sign by Owner / Manager

Professional Tax Slab Rate in Gujarat

Here is an overview of the current professional tax slabs in Gujarat:

Monthly Income

Professional Tax Amount Payable (per month)

Up to Rs 12,000

Nil

Rs 12,000 and above

Rs 200

Enrollment tax depends on various parameters such as annual income, type of profession etc., click here to know in detail.

Gujarat Professional Tax Online Payment

You can pay professional tax online by visiting the official website of the respective municipal corporation in Gujarat. If you are wondering how, check these steps.

  • Professional Tax Surat Municipal Corporation
  • Visit the official website of Surat Municipal Corporation and click on the ePay service.
  • Select the ‘Check and Pay Professional Tax’ option from the ‘Professional Tax’ column. 
  • From the available options, select the zone. Provide the certificate number and enter the captcha code. 
  • Click on ‘Enter Pending Tax Amount’. 
  • Finally, select the online payment option and make payment through your preferred payment gateway. 
  • Professional Tax Ahmedabad Municipal Corporation
  • Visit the official website of Ahmedabad Municipal Corporation and from the ‘Quick pay links’ section, select ‘Pay professional tax’.
  • Now, enter 'Profession Tax number' and select the 'Search' option.
  • Finally, select the 'Pay' option and payment gateway accordingly. 
  • Professional Tax Vadodara Municipal Corporation
  • Navigate to the official website of Vadodara Municipal Corporation and click on the ‘Online Payment’ option.
  • Thereafter, enter the PEC number and click on the ‘Search’ option. Upon entering, click on ‘Check Box’ and select your preferred payment method.
  • Now, click on the ‘Confirm’ option to complete the transaction. You will see all transaction details on the screen. For future reference, click on ‘Print receipt’.

Gujarat Professional Tax Late Payment Penalty

As per the Profession Tax Act, if you fail to make payment within the specified time, you will be subject to a daily late payment fee and annual interest of 18% on the total amount owed. 

Gujarat Professional Tax Exemption

Here are the individuals who are exempt from paying professional tax in Gujarat: 

  • Disabled individuals who have to present a disability certificate to qualify for the exemption. 
  • Individuals earning up to Rs 12,000 per month as salary/wages.
  • Senior citizens aged 65 and above. 

Various PT Forms 

Category of assessee

Application Form

Employer's Registration Form

Form 1

Application For a Certificate Of Enrolment / Revision Of Certificate Of Enrolment

Form 3

Monthly Return Of Tax Payable By Employer

Form 5

Annual Return Of Tax Payable By Employer

Form 5-A /5-AA

Final Word

To pay professional tax in Gujarat efficiently, you need to stay updated on a regular basis. In this regard, you need to follow the official websites, which are periodically updated. With updated and crucial information about professional tax, you will be able to pay taxes on time without any hitch.

Frequently Asked Questions

Is professional tax compulsory in Gujarat?

As per the law, if you are eligible for professional tax in Gujarat, you are liable to pay it to the government as per the applicable tax rate. Timely payment can further help you to avoid penalties. 

How much is a professional tax in Gujarat?

The maximum amount that you are liable to pay is Rs 2500 per year. However, on a monthly basis, if your gross salary is, let’s say, between Rs 13,500, you need to pay Rs 200 per month. 

Who is eligible for professional tax in Gujarat?

Individuals, Hindu undivided families and all associations/companies/businesses are eligible to pay professional tax in Gujarat. 

Who is exempt from professional tax in Gujarat?

As per the new professional tax rates announced by Gujarat government, individuals earning up to Rs 12,000 are exempt from paying professional tax. Disabled individuals and senior citizens are also included in the list.

How to pay professional tax in Gujarat?

If you are a salaried employee, your employer will deduct the tax from your salary. On the other hand, if you are a self-employed individual, you can pay this tax directly to the respective municipal corporation through online mode.

Does an employer have to deduct profession tax from the salaries of each and every employee ?

Yes. He is required to deduct the amount of tax from the salaries of all employees except those who are drawing a salary of less than Rs.3000/- per month.

Is there any time limit prescribed for registration ?

The time limit is 60 days from the date of accruing liability under the Act.

About the Author

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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Quick Summary

In India, professional tax in Gujarat is levied on self-employed individuals and employees. The tax is payable monthly or quarterly and must be paid on time to avoid penalties. The tax amount varies based on income levels and type of profession. Online payment options are available through municipal corporation websites. Exemptions exist for disabled individuals, those earning below a certain threshold, and senior citizens. Staying informed and updated on tax regulations is crucial for timely compliance.

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