Professional Tax in Maharashtra – PT

Professional tax is a significant deduction you’ll often see on your pay slip if you’re a salaried individual in Maharashtra. This tax, mandated by the state government, applies to both self-employed individuals and organizations, depending on their income levels. Here’s a comprehensive guide to understanding and managing your professional tax obligations in Maharashtra.

Professional Tax in Maharashtra: The Maharashtra state government levies professional tax on earned income, as authorized by Article 276 of the Indian Constitution. This tax applies to all salaried employees and professionals, with rates and income slabs set by the state government.

Maharashtra Professional Tax Rule: Under the Maharashtra State Tax on Professions, Trades, Callings, and Employment (Amendment) Rules, professional tax is imposed on salaried employees and self-employed individuals. Employers must obtain registration or enrolment certificates within 30 days of starting their business or profession.

Applicability: Professional tax in Maharashtra applies to Hindu Undivided Families (HUFs), individuals, and various entities like companies, associations, and cooperative societies. Employers of salaried individuals are responsible for deducting and depositing the tax on behalf of their employees.

Online Payment Procedure: To pay professional tax online in Maharashtra, follow these steps:

1. Visit the Maharashtra GST Department’s official website and select the ‘e-payment’ option.
2. Choose the appropriate professional tax act (PTEC or PTRC) based on your status.
3. Enter necessary details like payable amount, payment period, and mobile number.
4. Proceed to payment, and upon successful transaction, you’ll receive an acknowledgement receipt.

Alternatively, you can use the Sales Tax Portal of GRAS for payment, providing essential details and generating a Government Reference Number for payment.

Due Date and Late Payment Penalty: The due date for professional tax payment in Maharashtra depends on the enrolment date. Failure to pay on time incurs penalties, such as 1.25% tax per month for individuals and 2% interest per month for employers.

Exemptions: Certain individuals are exempt from professional tax in Maharashtra, including senior citizens aged 65 and above, parents of physically challenged children, individuals with over 40% disability, and badli workers in the textile industry.

Understanding and fulfilling your professional tax obligations is crucial for both individuals and businesses in Maharashtra. By following the correct procedures and deadlines, you can ensure compliance with state regulations and avoid penalties.