Professional Tax in Nagaland Professional Tax in Nagaland

The state government of Nagaland collects professional tax on individuals who generate revenue from working for any organization or company, self-employment, business professionals, and freelancers. Under the Nagaland State Tax on Professions, Trades, Callings and Employment Act, 1975, the professional tax system of Nagaland is regulated. The state government levies professional tax and has excellent revenue from it, and the collected taxable amount is invested in public welfare schemes and state development plans. The professional tax is applicable around 17 states in India, including Nagaland.

Who Is Eligible to Pay Professional Tax in Nagaland?

Earning individuals are subject to paying professional tax to the state government in the state they are working in if it levies professional tax. As the state governments themselves take over the entire process of professional tax payment, the eligibility criteria for paying professional tax in Nagaland have distinct norms. If you work in Nagaland, check your eligibility criteria below.

  1. Individuals earning more than Rs.4,000.00/—per month in Nagaland can pay the professional tax to Nagaland’s state sales tax department.
  2. The eligible earning individuals registered successfully on the state sales tax department website.
  3. Individuals who earn more than Rs.50,000.00/—are eligible to file their tax returns on or before the due date of each month of the year.
  4. Individuals who earned less than Rs.50,000.00/—last year can file their tax returns on or before March 31st.
  5. During the registration process, any individuals who submitted the correct documents or missed any documents during submission are eligible to apply again.

How Do You Register for Professional Tax in Nagaland?

Eligible earning individuals must register with the state government’s official website to proceed with tax payments. Registration requires accurate processing and submission of required documents. The individual is supposed to register again with the correct documents.

The Registration Procedures and Documents Required for Professional Tax Registration

  1. If the individual starts earning more than the minimum taxable salary range, which is Rs.4,000.00/—per month, they must submit Form 1 within 30 days on the State Sales Tax Department website, Nagaland.
  2. Memorandum Of Association
  3. Articles Of Association
  4. PAN Card
  5. Lease Agreement
  6. Passport Size photo
  7. ID proof
  8. Fees if applicable.

After successful registration, the candidate can get a registered number to pay the professional tax. Only eligible individuals can pay the state government’s professional tax.

Professional Tax Slab Rate in Nagaland

Each state has its tax slab for professional tax. The taxable amount is based on the salary range, and the minimum taxable salary range varies for all states. Still, the maximum taxable amount is stated by the central government of India, which is Rs.2,500.00/—per year. No state government is supposed to collect more than Rs.2,500.00/—Per Year, so the maximum taxable amount for all states is the same.

Sr No. Salary range monthly Taxable amount monthly
1 Upto ₹4,000 Nil
2 Between ₹4,001 To ₹5,000 ₹35
3 Between ₹5,001 To ₹7,000 ₹75
4 Between ₹7,001 To ₹9,000 ₹110
5 Between ₹9,001 To ₹12,000 ₹180
6 More than ₹12,001 ₹208

Due Date for Filing Professional Tax in Nagaland

Liable individuals who pay their professional taxes must file their tax returns on April 31st of every year. The due date for filing professional tax returns is the same for everyone. It is not based on a salary range like a taxable amount. If the liable individuals fail to file the tax returns on the due date, they are subject to paying the penalty levied by the state government of Nagaland. The penalty percentage differs in each state.

Conclusion

The individuals who earn more than Rs4,000/- per month are eligible to pay the professional tax in Nagaland. The eligibility and taxable amount varies based on state norms and guidelines. The state’s sales tax department takes over the entire process. The eligibility criteria, tax slab, and exemption categories vary from other states. If you work in Nagaland, your eligibility criteria for paying professional tax correspond to the salary range in this article.

If you are liable to pay the tax, you can follow the registration procedures mentioned above. If any liable taxpayers fail to pay professional tax or are not paying for the long term in Nagaland, they should pay the penalty and the taxable amount. It is the responsibility of every earning individual to check their tax eligibility and have to pay the amount if they are eligible. The taxable amount collected by Nagaland’s state sales tax department is invested in societal, empowerment, and public welfare schemes.

Frequently Asked Questions

Does Nagaland Levy Professional Tax?

The state government of Nagaland is also one of the states that levy a professional tax on working individuals, business professionals, self-employed individuals, and freelancers who earn more than the minimum salary range. Eligible individuals are liable to pay the professional tax in Nagaland.

What Is the Minimum Taxable Amount in Nagaland?

The tax slab for professional tax differs in every state based on the salary range, but the maximum taxable amount is similar in all states. The earning professionals whose income is between Rs.4,001.00/- to Rs.5,000.00/- per month have a minimum taxable amount of Rs.35.00/- per month.

Who Is Exempted From Paying Professional Tax in Nagaland?

People who work in Nagaland and generate income below Rs.4,000.00/—per month are exempt from paying professional tax.

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