According to Article 276 of the Indian Constitution, every individual earning an income is liable to pay professional tax. Whether you earn your source of living from a job or self-employment, paying this tax is mandatory.
However, the payable tax amount differs from one state to the other. Most Indian states have set their own tax rates for different income slabs. If you are a resident of New Delhi, read this article for a complete overview of professional tax in New Delhi.
Professional Tax in New Delhi
The state government imposes a professional tax on every professional, including lawyers, doctors, consultants, architects, etc. Moreover, you must pay professional tax in New Delhi if you earn from trade, calling, or other professions. However, salaried individuals can avail of a deduction against the paid professional tax according to Section 16 of the Income Tax Act of 1961.
New Delhi Professional Tax Rule
The Delhi State Tax on Professions, Trades, Callings and Employments Act of 1975 levies professional tax on every earning individual in Delhi. As per the New Delhi Professional Tax Act, if you earn a monthly income above Rs 50,000, you are eligible to pay this tax.
You must fill out Form 1 to apply for registration within 30 days of being liable as a professional taxpayer. After submitting the form, you will receive an acknowledgement that includes the date and time for attending for tax registration.
Professional Tax Applicability in New Delhi
The following individuals are liable to pay professional tax in New Delhi:
- Any earning individual residing within the boundary of New Delhi.
- Members of HUFs (Hindu Undivided Families)
- Any cooperative society, public or private limited company, an association of a body or person, etc.
- Salary or wage holders
Professional Tax Slab Rate in New Delhi
Check the following table to have a clear idea about the professional tax slab rate in New Delhi:
| Monthly Salary | Payable Professional Tax (per month) |
| Up to Rs 50,000 | Not Applicable |
| Rs 50,001 to Rs 75,000 | Rs 100 |
| Rs 75,001 to Rs 1,00,000 | Rs 150 |
| Above Rs 1,00,000 | Rs 200 |
Note: Self-employed individuals earning less than Rs 6,00,000 monthly are exempted from paying professional tax in New Delhi.
New Delhi Professional Tax Online Payment
Check out the following steps to register for professional tax payment online in New Delhi:
- Visit the official website of the New Delhi State Tax Department.
- Fill out Form 1. You must do these within 30 days once you are eligible to pay professional tax.
- Submit the form to receive an acknowledgement letter containing the date and time to attend the registration.
- Fill up the registration application properly and sign it before submitting it to the registration authority.
- After submitting the application form, you will receive the professional tax registration number in Form 1-A.
- Once registered, you can log in to the official website of the tax department with your credentials.
- Follow the instructions and complete the application form to make your professional tax payment.
New Delhi Professional Tax Payment Due Date
The due date for paying professional tax in New Delhi may vary according to your enrolment date. If your enrolment date is on or before May 31 of a year, your due date for professional tax payment will be June 30 of that year. However, if you enrolled after May 31, you must within one month from the enrolment date.
New Delhi Professional Tax Late Payment Penalty
If you pay the professional tax after the due date, you are liable to pay the penalty as set by the New Delhi Government. Any violation of the professional tax rule can impose a hefty penalty on the taxpayer.
Delhi Professional Tax Exemption
The following individuals have been exempted from professional tax payments in Delhi:
- Permanently disabled individuals and their parents.
- Senior citizens above 65 years of age.
- Owners of educational institutions that impart education to students up to class 12.
- Ex-servicemen, members of CPMF (Central Para Military Force), Armed Forces, etc.
Final Word
Thus, every individual earning from self-employment or holding a job is liable to pay a professional tax per their income slab. For salaried individuals, the amount is deducted from their salary by the employer and paid to the Commercial Tax Department. However, self-employed individuals must pay professional taxes in New Delhi by themselves.
You can log in to the official website and follow the instructions once registered for professional tax payment.