Professional tax is charged on salaried individuals and is paid to the Gujarat state government. Professional tax is deducted by the employer and the amount varies based on the employees’ income.A tax that is levied on employees and on those people carrying out a professional trade in India is called a Professional tax. The maximum amount that is levied as Professional tax on a person is Rs. 2,500 per year and the amount is remitted to the concerned State Government. The total amount of professional tax paid in a year qualifies for deduction according to the Income Tax Act, of 1961
Professional Tax in Gujarat
The state government of Gujarat imposes a professional tax on self-employed individuals and employees who earn their living through trades, callings or other types of professions.
In Gujarat, the professional tax is payable quarterly and monthly.
The Gujarat State Tax on Professions, Trades, Callings and Employment Act 1976 was enacted to impose a tax on individuals associated with various types of professions, employment, trades, and callings. The state government imposes this tax for the benefit of municipalities, municipal corporations, panchayats, and, of course, the state. Different municipal corporations in Gujarat are responsible for collecting this tax.
How to Register for Professional Tax in Gujarat?
The employer should apply for Registration certificate to Gujarat tax department within 30 days of employing staff for their business. The individual should apply separately for each business if they have more than one business.
Depositing the Tax Amount Deducted:
If the business owner or employer has employed more than 20 employees, they should make the payment within 15 days from the end of the month. The employer can make the payment quarterly if they have less than 20 employees. Employees can pay in treasury by challan through the bank if they are covered under the jurisdiction of state government as designated authority.
Professional Tax in Gujarat: Due dates
Number of employees in the Company | Frequency | Due Date |
Less than 20 employees | Monthly | Within 15 days of the end of the month |
More than 20 employees | Quarterly | Within 15 days from the end of the previous quarter |
Following are the quarterly due dates for Professional Tax in Gujarat:
- July 15 – for the quarter from April to July
- October 15 – for the quarter from July to September
- January 15 – for the quarter from October to December
- April 15 – for the quarter from January to March
If professional tax is not paid, interest at the rate of 18% per annum, calculated daily, shall be levied.
Professional Tax Applicability in Gujarat
If a person is involved in any profession, trade, vocation or employment and falls into any of the classes listed in column 2 of Schedule 1, then he/she is required to pay this tax to the designated authority in accordance with the income tax slab rate. The amount that can be levied and collected from any taxpayer annually varies from Rs. 1250 to Rs 2500.
If you are a salaried employee, your employer will deduct this professional tax from your salary or taxable income. Whereas, if you are self-employed, you are liable to pay this tax on your own to the state government of Gujarat.
Documents For Registration
- Memorandum Of Association & Articles Of Association
- PAN Card
- Lease Agreement
- Two Passport size photo of owner
- LWF paid receipt
- Company PAN card copy
- Canceled Letterhead
- Authorisation letter
Professional Tax Slab Rate in Gujarat
Monthly Income | Professional Tax Amount Payable (per month) |
Up to Rs 12,000 | Nil |
Rs 12,000 and above | Rs 200 |
Gujarat Professional Tax Online Payment
- Professional Tax Surat Municipal Corporation
- Visit the official website of Surat Municipal Corporation and click on the ePay service.
- Select the ‘Check and Pay Professional Tax’ option from the ‘Professional Tax’ column.
- From the available options, select the zone. Provide the certificate number and enter the captcha code.
- Click on ‘Enter Pending Tax Amount’.
- Finally, select the online payment option and make payment through your preferred payment gateway.
- Professional Tax Ahmedabad Municipal Corporation
- Visit the official website of Ahmedabad Municipal Corporation and from the ‘Quick pay links’ section, select ‘Pay professional tax’.
- Now, enter ‘Profession Tax number’ and select the ‘Search’ option.
- Finally, select the ‘Pay’ option and payment gateway accordingly.
- Professional Tax Vadodara Municipal Corporation
- Navigate to the official website of Vadodara Municipal Corporation and click on the ‘Online Payment’ option.
- Thereafter, enter the PEC number and click on the ‘Search’ option. Upon entering, click on ‘Check Box’ and select your preferred payment method.
- Now, click on the ‘Confirm’ option to complete the transaction. You will see all transaction details on the screen. For future reference, click on ‘Print receipt’.
FAQs
How much is a professional tax in Gujarat?
The maximum amount that you are liable to pay is Rs 2500 per year. However, on a monthly basis, if your gross salary is, let’s say, between Rs 13,500, you need to pay Rs 200 per month.
Gujarat Professional Tax Exemption?
- Disabled individuals who have to present a disability certificate to qualify for the exemption.
- Individuals earning up to Rs 12,000 per month as salary/wages.
- Senior citizens aged 65 and above