Professional Tax in Maharashtra Professional Tax in Maharashtra

You can pay professional tax if you live in Maharashtra and earn more than Rs.7500. You may be a salaried employee, business professional, or self-employed individuals; you must pay professional tax to your state government. Not all states levy professional tax on their employees. It is only collected in around 17 states in India.

Many people need clarification on whether this tax applies only to professionals, but it is different. An earning individual who meets the Maharashtra state government’s eligibility criteria for professional tax has to pay it.

Maharashtra Professional Tax Act

Indian constitutional law Article 276 clearly states the rules and guidelines for collecting taxes from any individual or organization. A revenue-generating person from an employer or business should know the professional tax the Maharashtra government levies in the Maharashtra State Tax On Professions, Trade, Callings And Employments Act, 1975.

The Indian government stated that no state can deduct professional tax of more than Rs. 2500/—from any individual. Although the state government collects the professional tax, the central government declares the maximum payable tax amount.

How Do You Register for Professional Tax in Maharashtra?

Employees who deduct professional tax from their salaries and individuals who generate income from any business must register for professional tax on the government’s official website.

The Documents Required

  1. Memorandum Of Association and Incorporation Certificate
  2. Articles Of Association
  3. PAN Card
  4. Lease Agreement
  5. Bank Details with Cancel Cheque
  6. Employer Address Proof and ID Proof
  7. Email address and Phone Number
  8. 2500/- for Enrollment Fees
  9. List of employees with Gross Salary.

Professional Tax Slab Rates in Maharashtra

Unlike other states, Maharashtra’s professional tax slab is unique, as it has separate slabs for male and female taxpayers. The table below shows Maharashtra’s slab system.

Sr No. Income range Payable tax amount Taxpayers
1 Up to ₹7,500 Nil Nil for Male Employees
2 Between ₹7,501 to ₹10,000 ₹175 For Male Employees
3 More than ₹10,000 ₹200 For Male Employees
4 More than ₹10,000 ₹300 Deducted only for male employees in February by their employer.
5 Up to ₹25,000 Nil Nil for female employees
6 Above ₹25,000 ₹200 For female employees
7 Above ₹25,000 ₹300 Deducted only for female employees in February by their employer.

The Eligibility Criteria For Paying Professional Tax in Maharashtra

The amount of professional tax in Maharashtra varies for males and females. The general eligibility criteria for tax payment are mentioned below.

  1. Individuals who are residents of Maharashtra and generate revenue.
  2. Hindu Undivided Families
  3. Company
  4. Organization having employees
  5. Cooperative society
  6. Association of person.

Maharashtra Professional Tax Exemption

Every earning individual should know the eligibility for paying the professional tax. This crucial understanding protect the individuals from paying a penalty for not paying the tax.

The people mentioned below are exempt from paying professional tax.

  1. Senior citizens who are more than 65 years old.
  2. Earning individuals who have physically challenged children
  3. Earning individuals having more than 40% disability
  4. Badli workers of the textile industry.
  5. Penalty For Not Paying Professional Tax
  6. Taxes are always penalized if one fails to pay or pays them after the due date. Likewise, professional taxes are punished if the taxpayers fail to pay them on time, pay for a short time, and provide false documents.
  7. Penalty rate
  8. It is 1.25% for individual taxpayers for every non-paying month.
  9. It is 2% for employers for every non-paying month.

Conclusion

Tax is the prime source of income for the state to generate more significant revenue, which in turn is used for public welfare. As an individual earning in Maharashtra, everyone has to pay professional tax. It is the responsibility of individuals and employers to pay the government tax.

Knowing eligibility and exemption is very important when paying the tax with a stipulated amount every month. The unpaid tax paid after the due date is subject to payment with a penalty. The unique criterion of Maharashtra’s professional tax-paying system is its separate tax-paying slabs for males and females.

Frequently Asked Question

1. What Is the Due Date for Paying Professional Tax in Maharashtra?

Individuals or business professionals registering before May 31 must pay before June 31. Individuals or business professionals who register after May 31 only get one month to pay the tax on or before June 31.

2. Is It Compulsory to Pay Professional Taxes in Maharashtra?

Paying professional tax to the state government is compulsory. The state levies a tax on earning individuals or business professionals. If one fails to pay the tax, he or she is subject to a penalty corresponding to the months in which the tax is not paid.

3. How to Pay Professional Tax in Maharashtra?

The Maharashtra government has a Sales Tax Portal where one can register and pay the tax online. Registration requires certain documents to get a registered number. Using the number, one can pay his or her professional tax.

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