Professional Tax in Sikkim Professional Tax in Sikkim

Individuals who work and earn in Sikkim state are subject to paying the professional tax to the state sales tax department. This tax, levied on those who generate income through self-employment, working under any organization or company in Sikkim, or through business, plays a significant role in the state’s development. The collected tax amount is used for state development schemes, empowerment, education development, and welfare plans, making every taxpayer contribute to these noble causes.

Sikkim Professional Tax Act

The state sales tax department of Sikkim collects the professional tax. The entire process of professional tax is handled by the Sikkim State Tax on Professions, Trades, Callings and Employments Act, 2006, under the rule of the Sikkim State Tax on Professions, Trades, Callings and Employments Act, 2006. Each state which levies a professional tax on earning individuals of the state has distinct acts and rules for them.

Who Is Liable to Pay Professional Tax in Sikkim?

The earning individuals are liable to pay professional tax to the state government, which collects professional tax. In Sikkim, the state sales tax department collects the professional tax on individuals who generate income by working under any organization or company, by self-employment, freelancing, or business if the individual’s monthly income is more than the minimum taxable Rs.20,001.00/- that is stated in the tax slab for professional tax on the commercial tax division website.

The Eligibilities Are Listed Below:

  1. People who earn more than Rs.20,001.00/—per month in Sikkim are eligible to pay the professional tax to the state sales tax department of Sikkim.
  2. The eligible earning individuals who made successful registrations on the official website of the state sales tax department.
  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.

If you are working in Sikkim and meet the above-mentioned eligibility, you are required to register with the official website to pay professional tax to the state government.

How Do You Register for Professional Tax in Sikkim?

Registration is a straightforward and essential step for paying professional tax in Sikkim. Once an earning individual checks their eligibility and finds themselves eligible to pay the tax, they can proceed to register on the official website. After successful registration, they receive an acknowledgment, which is required for future professional tax payments. In case of any errors or missing documents during the registration process, individuals can rectify and reapply, ensuring a smooth and confident registration process.

The Professional Tax Registration Procedures and Documents Required

  1. If the individual starts earning more than the minimum taxable salary range, which is Rs.20,001.00/—per month, they must submit Form 1 within 30 days on the State Sales Tax Department website, Sikkim
  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 this, the candidates get an acknowledgment, which is required for future professional tax payments.

Professional Tax Slab Rate in Sikkim

The professional tax slab in Sikkim is designed to be progressive, with the tax amount increasing as the salary range increases. The minimum taxable salary range, which varies from state to state, is set at Rs. 20,001.00/- per month in Sikkim. The maximum taxable amount for an individual, as per the central government, is Rs.2,500.00/-. This means that Sikkim can only collect a professional tax of Rs. 2,500.00/- from an individual.

Sr No. Salary range monthly Taxable amount monthly
1 Upto ₹20,000 Nil
2 Between ₹20,001 to ₹30,000 ₹125
3 Between ₹30,001 to ₹40,000 ₹150
4 Above ₹40,001 ₹200

Suppose you are working in Sikkim, and your monthly salary falls within the taxable range mentioned in the above table. In that case, you are subject to paying professional tax to the state sales tax department of Sikkim. Individuals who earn less than Rs.20000.00/—as their monthly income is exempt from paying professional tax.

Due Date for Filing Professional Tax in Sikkim

The state government states that individuals who paid their professional taxes must file tax returns on the year’s due date. In Sikkim, the due date to file tax returns is June 30th of every year. The time required to file tax returns varies based on individuals’ enrollment. If they enrolled before May 31st, they have more time than individuals who enrolled after May 31st, as the duration for these individuals is less than one month.

Conclusion

Working people who earn more than the minimum taxable salary range stated by the state government of Sikkim are responsible for paying professional tax to the government. Earning individuals can check their eligibility, registration process, and documents required for professional tax registration, tax slab, penalty, exemption, and tax file return on the official website of the state government.

Frequently Asked Questions

Who Is Exempted From Paying Professional Tax in Sikkim?

The minimum taxable salary range differs in all states that levy professional tax. Earning individuals with monthly incomes less than Rs.20,000.00/—are exempt from paying professional tax in Sikkim.

Does the Professional Tax Slab Vary From State to State in India?

Yes, the tax slab for professional tax varies in all states, which collect professional tax from individuals who earn more than the minimum taxable salary range. Each state has different norms and criteria for collecting professional tax.

Does the State Government of Sikkim Levy a Penalty for Non-paid Professional Tax?

Yes, the penalty applies to all taxes if the person does not pay them on time or in the long term. If you fail to pay on the due date or are not paying professional tax for a long time, you must pay the professional tax with a certain penalty percentage. The penalty varies in all states.

How Much Is the Maximum Taxable Amount for Professional Tax in Sikkim?

The tax slab is different for all states, but the maximum taxable amount is similar for all states. As stated by the central government of India, the maximum taxable amount for professional tax in India by the state government that levies professional tax on individuals is Rs.2,500.00/-. Around 17 states of India collect professional tax, and the maximum taxable amount is similar, including Sikkim.

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