Whether you are a working professional or have a business, it is imperative to pay professional taxes. It is a deduction that you will notice on your pay slip. If you are an employee and have noticed your employer deducting this tax every month, you must know everything about this tax.
All self-employed, salaried individuals and organizations are liable to pay professional tax in Maharashtra, depending on their income. In this article we will learn about professional tax in Maharashtra including slab rate and related information.
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.
The employer deducts professional tax from salaried employees' monthly salary, and self-employed people deposit professional tax amounts annually. The professional tax amount in Maharashtra ranges between Rs. 2,100 and Rs. 2,500 annually. The maximum professional tax in Maharashtra is Rs. 2,500. However, salaried employees can claim a deduction of professional tax payment under the old regime of the Income Tax Act.
Additionally, income slabs for male and female individuals differ regarding professional tax in Maharashtra.
Under the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules, the government can impose a professional tax. As per Maharashtra professional tax rule, every salaried employee needs to pay this tax.
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.
Professional tax in Mumbai applies to the following categories of individuals:
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.
The applicable income slab and professional tax rate in Maharashtra differ for male and female individuals. For more understanding, look at the given table below:
Monthly Gross Salary | Professional Tax Payable | Remarks |
Up to ₹7,500 | Nil | For Male Employees |
₹7,501 to ₹10,000 | ₹175 per month | For Male Employees |
₹10,001 and above | ₹200 per month except for February, ₹300 for the month of February | For Male Employees |
Upto ₹25,000 | Nil | For Female Employees |
Above ₹25,000 | ₹200 per month except for February, ₹300 for the month of February | For Female Employees |
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.
Step 1: Visit the official website of the Maharashtra GST Department and click on the ‘e-payment’ option.
Step 2: As per the status of your professional tax payment, select the appropriate option.
Step 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.
Step 4: After selecting the applicable option, enter the essential details. This includes the payable amount, period of professional tax payment, mobile number, etc.
Step 5: Click on 'Proceed to Payment'.
Step 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:
Step 1: Navigate to the official website of the Sales Tax Portal of GRAS and choose the tax type.
Step 2: Provide necessary TIN. For PTRC, enter the 12-digit TIN; for PTEC, enter the 11-digit TIN.
Step 3: Now click on the ‘Submit’ option. After that, provide the necessary details like your mobile number, office location, employer name, etc.
Step 4: Now choose the payment type. Once the ID gets generated automatically, select the payment period.
Step 5: Provide all payment-related details and click the 'Proceed' option. Then your screen will show a payment summary.
Step 6: Click on ‘OK’ after evaluating all details. Then a Government Reference Number will appear.
Step 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.
In Maharashtra, the date of enrolment determines the due date of professional tax payments:
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.
Check out the list below to know about individuals who are exempted from paying professional tax in Maharashtra.
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.
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Professional Tax in Karnataka
Professional Tax in West Bengal
Professional Tax in Delhi
Professional Tax in Telangana
Professional Tax in Gujarat
Professional Tax in Bihar
Professional Tax in Jharkhand
Professional Tax in Odisha
Professional Tax in Tamil Nadu
Professional Tax in Punjab
Professional Tax in Kerala
Professional Tax in Assam
Professional Tax in Andhra Pradesh