Professional Tax in Maharashtra: Applicability, Exemptions, Slab Rates, Due Date, Penalty, Payment Process

Professional tax (PT) is a levy imposed on individuals engaged in professions, trades, callings, or employments within the state of Maharashtra. This tax contributes to the state’s revenue and serves as a source of income for various development initiatives. Understanding the intricacies of PT in Maharashtra is crucial for both individuals and businesses operating within the state.

Maharashtra Professional Tax Legislative Framework and Applicability

The Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975 governs PT in Maharashtra. This act applies to a broad spectrum of entities, including:

• Individuals: Salaried employees, self-employed professionals, and even retirees receiving pensions.

• Businesses: Companies, corporations, firms, Hindu Undivided Families (HUFs), societies, clubs, and associations.

Maharashtra Professional Tax Exemptions

Certain categories of individuals are exempt from paying PT in Maharashtra. These include:

• Senior citizens above 60 years of age (men) and 58 years (women).
• Individuals with disabilities exceeding 40% certification.
• “Badli” workers (casual laborers employed for a short period).
• Parents or guardians of children with disabilities exceeding 40% certification.

Maharashtra Professional Tax Slabs

The amount of PT payable depends on the individual’s or entity’s monthly gross income and falls under the following slabs:

Maharashtra Professional Tax Payment Channels

• Employers: For salaried individuals, employers typically deduct the professional tax from their salaries and deposit it to the government authorities.

• Self-Employed individuals: Individuals can use the online portal of the Maharashtra Goods and Services Tax Department (https://mahagst.gov.in/en) to make online payments.

• Authorized Banks: Professional tax can also be paid through designated branches of authorized banks.

Maharashtra Professional Tax Due Dates

The due dates for paying Professional Tax in Maharashtra are as follows:

For Businesses Enrolled Before 31st May

• If a business is enrolled before the commencement of the year or before 31st May of the financial year, the last date for professional tax payment is 30th June of that year itself.

For Enrolments After 31st May

• In case of enrolments post 31st May, professional tax needs to be paid within 30 days of the date of enrolment.

Maharashtra Professional Tax Penalty

In Maharashtra, the penalties for not paying professional tax are as follows:

For Employers

• A penalty of Rs. 5 per day is charged for each day of delay in obtaining professional tax registration.
• Late filing of professional tax returns attracts a penalty of Rs. 1,000.
• A penalty of 10% of the tax due is applicable in case of late payment of professional tax dues.
• Additionally, an interest on late payment can be levied at up to 1.25% per month.

For Individuals

• If an enrolled individual fails to pay the tax on time, a penalty of 1.25% of the tax is payable for each month of delay.
• Employers must pay 2% interest per month on the total amount due if they fail or delay the payment.

Maharashtra Professional Tax Online Payment

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

• Visit the official website of the Maharashtra GST Department and select the “e-payment” option.
• Choose the appropriate category based on your current professional tax status.
• Select the applicable professional tax act: PTEC (Professional Tax Enrolment Certificate) or PTRC (Professional Tax Registration Certificate).
• Enter the required information, including the period covered, payment amount, location, and mobile number.
• Click “Proceed to Payment” and complete the online payment process.
• Upon successful payment, you will receive an acknowledgment receipt on screen. Capture this receipt for future reference (screenshot or download).

Key Points to Remember

• PT registration is mandatory for all businesses and self-employed individuals liable to pay the tax.
• PT is a separate tax from income tax and needs to be paid separately.
• Employers must maintain proper records of PT deducted from employee salaries.
• Non-compliance with PT regulations can lead to penalties and legal action.

Conclusion

Understanding and complying with PT regulations in Maharashtra is essential for both individuals and businesses. By staying informed about the applicable laws, exemptions, and payment procedures, individuals can ensure they fulfill their tax obligations, while businesses can maintain compliance and avoid potential penalties.

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