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Profession Tax Rates & Critical Dates for

Organizations and Salaried Employees in Maharashtra


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Gray Arrow What is Profession Tax ?
Profession Tax is a State level Tax in India on Professions, Trades, Callings and Employments.

Gray Arrow States In India Where Applicable - The following Indian states levy Profession Tax - West Bengal, Karnataka, Maharashtra, Andhra Pradesh, Gujarat, Tamilnadu and Madhya Pradesh.



Gray Arrow Profession Tax in Maharashtra
Gray Arrow In Maharashtra (Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975), Profession Tax is applicable both on

Gray Arrow Individuals &

Gray Arrow Organizations (Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association Of Persons, Corporation or any other corporate body in Maharashtra per the provisions of the Maharashtra Professional Tax Act of 1975.

The relevant information for both these categories ( Individuals & Organizations ) is shown below.



Gray Arrow Profession Tax Penalties
Gray Arrow Delays in obtaining Enrolment or Registration Certificate - Penalty of Rs. 2/= (Rupees Two) per Day.

Gray Arrow Providing false information regarding enrolment - Penalty of 3 times tax amount.

Gray Arrow Non-payment of profession tax - Penalty equal to 10% of the amount of tax can be imposed.






Gray Arrow For Organizations
Down Arrow On It's Employees

An employer organization is required to get registered under the Profession Tax Act and obtain a Registration Certificate under which the payment in respect of taxes deducted from employees salaries can be made.

Down Arrow On Itself

Also as a firm, the organization is required to obtain Enrolment Certificate and pay Profession tax on it's behalf.



Gray Arrow Profession Tax Rates for Salaried Employees on or after 1st July 2009
Down Arrow The rate of Monthly Profession Tax in Maharashtra for salaried employees is as follows :

Gray Arrow Persons whose monthly salary or wages are <= Rs. 5000 - NIL.

Gray Arrow Persons whose Monthly salary or wages > Rs. 5000 but <= Rs. 10000 - Rs 175.

Gray Arrow Persons whose Monthly salary or wages > Rs. 10000 - Rs 2500 per annum to be calculated @ Rs 200 per month except in the month of February where it is Rs 300.



Gray Arrow Profession Tax Rates for Salaried Employees upto 30th June 2009
Gray Arrow Persons whose monthly salary or wages are <= Rs. 2500 - NIL.

Gray Arrow Persons whose Monthly salary or wages > Rs. 2500 but <= Rs. 3500 - Rs 60.

Gray Arrow Persons whose Monthly salary or wages > Rs. 3500 but <= Rs. 5000 - Rs 120.

Gray Arrow Persons whose Monthly salary or wages > Rs. 5000 but <= Rs. 10000 - Rs 175.

Gray Arrow Persons whose Monthly salary or wages > Rs. 10000 - Rs 2500 per annum to be calculated @ Rs 200 per month except in the month of February where it is Rs 300.



Gray Arrow Due dates for payment of Profession Tax & filing returns
Down Arrow For employers holding Registration Certificate,the period of returns to be filed on basis of annual tax liability amounts are as follows :

Gray Arrow Annual Profession Tax Liability < Rs. 5000 - Annual Return.

Gray Arrow Annual Profession Tax Liability >= Rs. 5000 but < Rs. 20000 - Quarterly Returns.

Gray Arrow Annual Profession Tax Liability >= Rs. 20000 - Monthly Returns.

Returns are required to be filed on or before the last date of the month to which the return relates.

It should contain details of salaries paid and the amount of tax deducted in respect of the month immediately preceeding the month to which the return relates.



Gray Arrow Profession tax query answered by our advisor
Gray Arrow Query : Profession tax in Maharastra state is given as Rs 2500.00 per annum for the slab exceeding Rs 10000.00 per month and with a condition that Rs 200 has to be recovered from every month except in February where it is to be recovered Rs 300.00.

As our HRMS (Human Resource Management System) software package is not capable of calculating a different amount for February as compared to the other months, please advise as to whether can we recover Rs 208.34 Per month which comes to 2500.08 per year.

- Senior Officer - Accounts, Large Public Sector Organization, Mumbai.



Gray Arrow Kaytek Profession Tax Advisor's Answer :

1.0 - Get a letter signed by all your employees in category > 10000 pm. In this letter, they should mention that in lieu of the practical difficulties of deducting different amounts for February and for Non-February months, they are authorising you to deduct 208.34 per month on their behalf.

2.0 - Even though you have deducted 208.34 per month upto February, you will have to deposit Profession Tax @ Rs 200 per month only with the government for the non-February months.

(The remaining amounts of Rs 8.34 for each employee will remain in your books as advance Profession Tax collected till February).

For February, you will have to pay Profession Tax @ Rs 300.

We trust the above satisfies your query.



Gray Arrow For more information on the above, kindly contact us.



Gray Arrow For Individuals
Every person residing in Maharashtra engaged in any profession, trade, calling or employment is liable and has to obtain a Certificate of Enrolment from the Profession Tax Authority.

Once this certificate is obtained, the person can discharge their individual tax liability for five years by paying lumpsum amout equal to the amount of Profession Tax for four years in advance, getting relief for one year's payment.



Gray Arrow Exempted Individuals
The following persons are exempted from the provisions of the Profession Tax Act in Maharashtra :

Gray Arrow Senior Citizen above 65 years age.

Gray Arrow Handicapped Person with more than 40 % disability or parent of a physically disabled or mentally retarded child.



Gray Arrow Due dates for payment of Profession Tax & filing returns
Gray Arrow For persons holding Enrolment Certificate - 30th June.

For any delay, interest @ 1.25% per month will be charged.

Bank payment challans to be received by all Enrolment Certificate holders by mid June.






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Updated on 11th November 2010.
Created on 18th August 2006.

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