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.