Brief Notes on Professional Tax / Brief Notes on PT / FAQs on Professional Tax
What is Professional Tax Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.
Applicability of Professional Tax as per the Constitution of India: Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act. Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time.
Employer is required to registered himself with municipality or district panchayat for professional tax. He has to get separate registration for different places. However he can apply for consolidated return for different places in form no. 5 CC. If he fails to get himself registered, he is liable for penalty of `.20 per day for the days he remains unregistered for professional tax number in Gujarat.
If less than 20 or less 20 Employees , than Due date for payment of Professional Tax is 15th day from
the end of quarter .
Month/Quarter Due Date For Payment Of Professinal Tax
April –June 15th of July
July – Sep 15th of Oct
Oct – Dec 15th of Jan
Jan – March 15th of Mar
If More than 20 Employees , than Due date for payment of Professional Tax is 15th day from the end
of Month .
Month/Quarter Due Date For Payment Of Professinal Tax
April 15th of May
May 15th of Jun
June 15th of Jul
July 15th of Aug
August 15th of Sep
September 15th of Oct
October 15th of Nov
November 15th of Dec
December 15th of Jan
January 15th of Feb
February 15th of Mar
March 15th of Apr
Interest and late payment
If Employer fail to pay Professional tax than he liable to pay Interest @ 18 %
P.A With Penalties.
Due date of filing of PT Return
If More than 20 Employees , than Due date for filling of Professional Return Tax is 15th
day from the end of Month in form No.5 ,However , He can apply for annual return in
form No.5B.
Credits:
CA Kunal Agarwal & Associates
Rana Jignesh M
What is Professional Tax Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.
Applicability of Professional Tax as per the Constitution of India: Article 276 of the Constitution of India provides that “there shall be levied and collected a tax on professions, trades, callings and employments, in accordance with the provisions of this Act. Every person engaged in any profession, trade, calling or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay to the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule. Provided that entry 23 in the Schedule shall apply only to such classes of persons as may be specified by the State Government by notification from time to time.
Employer is required to registered himself with municipality or district panchayat for professional tax. He has to get separate registration for different places. However he can apply for consolidated return for different places in form no. 5 CC. If he fails to get himself registered, he is liable for penalty of `.20 per day for the days he remains unregistered for professional tax number in Gujarat.
If less than 20 or less 20 Employees , than Due date for payment of Professional Tax is 15th day from
the end of quarter .
Month/Quarter Due Date For Payment Of Professinal Tax
April –June 15th of July
July – Sep 15th of Oct
Oct – Dec 15th of Jan
Jan – March 15th of Mar
If More than 20 Employees , than Due date for payment of Professional Tax is 15th day from the end
of Month .
Month/Quarter Due Date For Payment Of Professinal Tax
April 15th of May
May 15th of Jun
June 15th of Jul
July 15th of Aug
August 15th of Sep
September 15th of Oct
October 15th of Nov
November 15th of Dec
December 15th of Jan
January 15th of Feb
February 15th of Mar
March 15th of Apr
Interest and late payment
If Employer fail to pay Professional tax than he liable to pay Interest @ 18 %
P.A With Penalties.
Due date of filing of PT Return
If More than 20 Employees , than Due date for filling of Professional Return Tax is 15th
day from the end of Month in form No.5 ,However , He can apply for annual return in
form No.5B.
Credits:
CA Kunal Agarwal & Associates
Rana Jignesh M
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