Professional Tax in Meghalaya Professional Tax in Meghalaya

The state government of Meghalaya imposed a professional tax on working individuals, salaried professionals, business professionals, and self-employed individuals. The tax amount collected is reflected in public welfare activities. As an earning individual, one must pay the professional tax to the state government where the tax is applicable.

Meghalaya Professional Tax Act

Article 246 of the Indian constitution states that a state government can impose a professional tax. According to this act, some state governments of India levied the tax. The state government of Meghalaya has certain norms that are followed under the Meghalaya Professions, trades, callings, and Employment Taxation Act 1947.

Professional Tax Registration in Meghalaya

The tax amount can be paid only after successfully registering via the official website of Meghalaya’s state sales tax department. Registration requires certain documents for verification purposes, and only one can have their registered number to pay professional tax. The documents needed for professional tax registration in Meghalaya are listed below

  1. Memorandum Of Association and Incorporation Certificate
  2. Articles Of Association
  3. PAN Card
  4. Lease Agreement
  5. S&E Certificate / Trade License Copy
  6. Passport size photo
  7. Fees if applicable

After successfully registering, you are provided with the acknowledgment number. If the furnished documents are found incorrect, the individuals are supposed to pay the penalty.

Professional Tax Slab in Meghalaya

Every tax is collected based on a certain income or amount range. The government’s official tax slab shows the taxable amount corresponding to one’s income. In the case of professional tax, the state has a separate tax slab, as every state has different eligibility, exemptions, and tax slabs. If you work and earn in Meghalaya, you can check the taxable amount corresponding to your income range in the table below.

Sr No. Salary Range per Year Taxable Amount per Year
1 Below ₹50,000 Nil
2 Salary Range Between ₹50,001 To ₹75,000 ₹200
3 Salary Range Between ₹75,001 To ₹1,00,000 ₹300
4 Salary Range Between ₹1,00,001 To ₹1,50,000 ₹500
5 Salary Range Between ₹1,50,001 To ₹2,00,000 ₹750
6 Salary Range Between ₹2,00,001 To ₹2,50,000 ₹1,000
7 Salary Range Between ₹2,50,001 To ₹3,00,000 ₹1,250
8 Salary Range Between ₹3,00,001 To ₹3,50,000 ₹1,500
9 Salary Range Between ₹3,50,001 To ₹4,00,000 ₹1,800
10 Salary Range Between ₹4,00,001 To ₹4,50,000 ₹2,100
11 Salary Range Between ₹4,50,001 To ₹5,00,000 ₹2,400
12 Salary Range Between Above ₹5,00,001 ₹2,500

As mentioned above, the Meghalaya professional tax slab rate differs entirely from other states. The maximum taxable amount is Rs.2,500.00/—per year, which is typical for all states in India that levy professional tax. The central government states the maximum taxable amount for professionals.

Meghalaya Professional Tax Late Payment Penalty

Every tax and bill has a penalty for non-payment or delayed payment. Likewise, professional taxes have a penalty for working professionals who miss the due date or do not pay the tax. The penalty starts at 2% of the taxable amount for every non-paid month and extends up to 10%. In addition, if any fake documents are submitted, the individuals have to pay 3X times the actual liable tax amount.

Conclusion

As working individuals, salaried employees, business professionals, and self-employed individuals in a state, we must contribute a notable part to society’s welfare. You may have been born in other states and worked in Meghalaya. Still, if you earn in the state and fall under the eligibility criteria of the state government, you have to pay the professional tax to the state government.

The professional tax system of Meghalaya is distinct from that of other states, but the maximum payable tax amount is Rs.2,500.00/—per year, similar to that of different states. This article discusses the norms and tax slab range. Everyone should know their eligibility and pay on or before the due date to avoid penalties.

Professional Tax in Meghalaya FAQs

Why Is Professional Tax Imposed in Meghalaya?

The state government levies professional tax for income-generating individuals to increase the state’s revenue for public welfare and societal development schemes.

Who Is Exempted From Paying Professional Tax in Meghalaya?

In Meghalaya, individuals who earn below Rs.50,000/—per year are exempt from paying professional tax. Individuals who earn more than Rs.50,000/—are subject to pay professional tax based on their salary range.

What Is the Minimum Taxable Amount in Meghalaya?

The entire tax slab of Meghalaya is different from that of other states. The minimum taxable amount in Meghalaya is Rs.200.0/—per year for salaries between Rs.50001 and Rs.75000.

Does the Central Government Collect Professional Tax in Meghalaya?

In India, around 17 states collect professional taxes. The Meghalaya state government is responsible for levying and collecting professional tax.

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