Professional Tax Maharashtra - Tax Slab, Payment, Applicability, Due Date, Exemption

Professional tax liability arises in Maharashtra when the individual earns income through employment or profession.  It is a deduction that you will notice on your pay slip. 

All self-employed, salaried individuals and organizations are liable to pay professional tax in Maharashtra, depending on their income.

Professional Tax in Maharashtra

The Maharashtra state government imposes a professional tax as per the applicable income slab and tax rate on salary employees working in the private and government sectors and self-employed people engaged in any business or profession, such as doctors, lawyers, chartered accountants, engineers, etc., who are working in Maharashtra.

Employers of such employees and self-employed individuals must obtain a certificate of registration or certificate of enrolment from the prescribed authority. Furthermore, you should apply for enrolment or registration within 30 days from the commencement date of your profession/business. The employer deducts professional tax from salaried employees' monthly salary, and self-employed people deposit professional tax amounts annually. 

Additionally, income slabs for male and female individuals differ regarding professional tax in Maharashtra.

Professional Tax Rate in Maharashtra

The professional tax rate in Maharashtra differ for male and female individuals. For more understanding, look at the given table below:

Professional Tax Applicability in Maharashtra

Professional tax in Mumbai applies to the following categories of individuals:

• Hindu Undivided Families (HUFs)
• Individuals
• Company/Association of person/Co-operative Society.

Furthermore, only employers of salaried individuals are liable to pay such taxes on behalf of their employees. In this process, the employer deducts a certain amount of tax from the salary and deposits it to the municipal corporation.

Maharashtra Professional Tax Online Payment

After learning about the tax slab rate and applicability of professional tax, the next question that will hit your mind is what the procedure to pay this tax is. 

Follow the below process and pay professional tax online without any hassle.

1. Visit the official website of the Maharashtra GST Department and click on the ‘e-payment’ option.
2. As per the status of your professional tax payment, select the appropriate option.
3. Now, select the appropriate professional tax act. You can choose either the PTEC (Professional Tax Enrolment Certificate) or the PTRC (Professional Tax Registration Certificate) Act.
4. After selecting the applicable option, enter the essential details. This includes the payable amount, period of professional tax payment, mobile number, etc.
5. Click on 'Proceed to Payment'.
6. After successful payment, an acknowledgement receipt will appear on the screen. You can take a screenshot or download it for future reference.

In addition, you can make payments through an alternative process. Follow the below process:

1. Navigate to the official website of the Sales Tax Portal of GRAS and choose the tax type.
2. Provide necessary TIN. For PTRC, enter the 12-digit TIN; for PTEC, enter the 11-digit TIN.
3. Now click on the ‘Submit’ option. After that, provide the necessary details like your mobile number, office location, employer name, etc. 
4. Now choose the payment type. Once the ID gets generated automatically, select the payment period.
5. Provide all payment-related details and click the 'Proceed' option. Then your screen will show a payment summary.
6. Click on ‘OK’ after evaluating all details. Then a Government Reference Number will appear.
7. Now click 'OK', and you will be redirected to the bank's website. After making a successful payment, a receipt will be generated. You can download it as per your need. 

Maharashtra Professional Tax Payment Due Date

In Maharashtra, the date of enrolment determines the due date of professional tax payments:

•  Businesses that enrolled before May 31 of a given year must pay this tax by June 30 of that year.
•  Businesses that enrolled after May 31 of a fiscal year must pay professional tax within one month from the enrollment date. 

Maharashtra Professional Tax Late Payment Penalty

A penalty of 1.25% tax is payable for each month if an enrolled individual fails to pay this tax on time. On the other hand, employers must pay 2% interest per month on the total amount due if they fail or delay doing so. 

Maharashtra Professional Tax Exemption

Check out the list below to know about individuals who are exempted from paying professional tax in Maharashtra.

• Senior citizens aged 65 years and above.
• Parents of physically challenged children
• Individuals having more than 40% disability
• Badli workers of the textile industry. 

Final Word

Under the Professional tax in Maharashtra Act, every person engaged actively in any profession in Maharashtra is liable to pay this. Make sure to pay the applicable tax on time to avoid incurring any hefty penalties.