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 explain about:
- Professional tax in Assam
- Professional tax slab in Assam
- Applicability of professional tax in Assam
- Professional tax payment
- Professional tax exemption in Karnataka
- FAQs
Professional Tax in Assam
According to the state government of Assam, every individual, whether salaried or self-employed, is liable to pay professional tax. Even professionals like lawyers, doctors, chartered accountants, etc., need to pay professional taxes. The amount of tax payable is decided by the Assam government and depends on one's income slab.
Assam Professional Tax Act
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.
Professional Tax Applicability in Assam
Take a look at the list below to know the individuals eligible to pay professional tax in Assam:
- Salaried or waged individuals
- Medical and legal practitioners including dentists, medical consultants, notaries public, etc.
- Professional consultants including tax consultants, CA, engineers, etc.
- Individuals engaged in professions like calling, trading, etc.
- Real estate agents, building contractors, brokers, etc.
The minimum tax rate amounts to ₹250, and the maximum rate is ₹2500 per annum.
List Of Documents For Registration
- Incorporation certificate, Memorandum Of Association or Articles Of Association
- PAN Card
- Lease Agreement
- GST Registration copy
- Employer Address Proof, ID Proof and photos
- No of employees
Professional Tax Slab Rate in Assam
The professional tax slab rate in Assam 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:
- Salaried or waged individuals
Monthly Salary or Wage | Tax Slab Rate |
Up to Rs 10,000 | Not Applicable |
Rs 10,001 to Rs 15,000 | Rs 150 per month |
Rs 15,001 to Rs 25,000 | Rs 180 per month |
Above Rs 25,001 | Rs 208 per month |
- Medical and legal practitioners, professional and technical consultants, individuals engaged in vocation or trade, etc.
Annual Gross Income | Tax Slab Rate |
Up to Rs 1,20,000 | Not Applicable |
Rs 1,20,001 to Rs 1,80,000 | Rs 1800 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 Professional Tax Online Payment
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:
- Log in to the official website of the Government of Assam Commissionerate of Taxes.
- Search ‘Information & Services’, select ‘e-services’ and then ‘e-payment’.
- Enter your ID and password to log in.
- Search for e-payment e-GRAS.
- Click on ‘Make Payment’.
- Fill up the form with professional and personal details as required.
- Complete your payment for professional tax in Assam.
- Print the payment challan after completing the payment procedure.
Assam Professional Tax Payment Due Date
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.
Assam Professional Tax Late Payment Penalty
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.
Assam Professional Tax Exemption
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:
- If you are a member of the Armed Forces of India, you are not liable to pay any professional tax.
- If you are among those individuals notified by the Assam Government in the public interest, you are exempt from tax payment.
Professional Tax Forms for Assam
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 |
Final Word
Thus, every responsible individual earning a minimum salary of Rs 10,001 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.