Legal Guide

Know What is the Professional tax slab in Gujarat

by Bhavya Choudhary · 4 min read

professional tax slab in gujarat

Professional tax is the name given to the tax placed on workers and individuals engaged in a profession in India. The highest Professional Tax Slab in Gujarat imposed on an individual each year is Rs. 2,500, which is deposited to the relevant State Government. 

According to the Income Tax Act of 1961, the entire amount of professional taxes paid in a given year is deductible. This article examines in depth the Professional Tax Slab in Gujarat.

Professional Tax Slab in Gujarat

Professional tax is based on salary and the state-established professional tax slab in Gujarat. The money is withdrawn from the employee’s pay or income by the firm or business owner. The funds collected are sent to the State Government.

Professional Tax Registration in Gujarat

The taxpayer must submit an application for the registration certificate to the appropriate state agency. This process must be performed within 30 days of hiring personnel for their company. If the person owns many businesses, each must submit a separate application.

Making a Deposit of the Tax Deducted

If an employer employs more than 20 workers, the payment should have been paid within 15 days after the end of the month. If an employer has less than 20 workers, however, the payment might be sent quarterly.

Documents Required

Documentation indicating the date the firm commenced:

  • Accounting documents for determining Professional Tax Slab in Gujarat
  • Employees details
  • Details of salary paid to determine Professional Tax Slab in Gujarat
  • Address evidence

Professional Tax Slab in Gujarat based on monthly income

Professional Tax Slab in Gujarat for Individuals and Firms

Professional Tax Return in Gujarat

Professional tax returns must be submitted within 15 days after the month’s expiration date. A taxpayer may also submit an annual tax return. Nonetheless, it will be approved by tax authorities. If a firm has less than 20 workers, the employer may submit the return annually. The filing deadline is 15 days after the end of the preceding fiscal year.

Interest on late payment of Professional Tax Slab in Gujarat

Every late payment of professional tax incurs an annual interest rate of 18 percent. In addition to interest, a penalty is assessed to the taxpayer.

When a person has entered into a work contract and his salary is more than Rs. 2500, he is required to pay professional tax. To get your work contract drafted, one may consult a lawyer. 

Application Method

The processes to pay professional taxes online are outlined here.

Step 1: Access the official website.

The taxpayer must visit the government website.

Step 2: Click Online payment 

The taxpayer must click “Online Payment” and then choose “Professional Tax”.

Step 3: Enter the PEC Number 

The taxpayer must enter the PEC number in the text field and then choose the Search option.

Step 4: Details of the Overdue Amount

Once the Search button is selected, the details of the outstanding balance are presented.

Step 5: Select the checkbox

The taxpayer must choose the corresponding checkbox for the payment to be paid. In the Amount Payable section, the whole sum is presented.

Step 6: Payment Method 

The taxpayer must choose a payment method, including net banking, debit card, or credit card.

Step 7: Click the Confirm button

The taxpayer must then choose the checkbox and click the Confirm button after reading the terms and conditions. The taxpayer may continue with the Online Payment procedure by clicking the confirm button.

It is better to get a lawyer online (ezylegal.in) in order to fill out the application form.

Debit/ Credit Card Banking

Step 1: Select Debit/ Credit Card Banking

To remit the money through net banking, the taxpayer must pick Debit/Credit Card Banking as the payment method and then click the Confirm button.

Step 2: Confirmation of the Payment Processing Phase

The confirmation page for the payment procedure displays the transaction data. The taxpayer must confirm the information and click the Confirm button.

Step 3: Choose Visa or Master Card

The taxpayer is then required to pick a Visa/ Master card on the Axis bank Visa/ Master Card page.

Step 4: Select the Pay Now option

The taxpayer is required to choose the Pay Now option. Once this choice is selected, the screen shows the message “Your Payment Has Been Approved”.

Step 5: Print Receipt

Upon completion of the payment procedure, the transaction status is shown on the screen. To acquire a receipt for the payment, click Print Receipt.

Printing the Receipt Again

To reprint the receipt, choose Reprint Receipt from the menu and input the VMSS transaction number and PEC number. Then click the option labelled “Check Status”. The transaction status is shown when this button is clicked. To print the receipt, click the Print Receipt button.

Access Payment Histories

Select ‘View Payment History’ from the drop-down menu. Click the Search button after entering the PEC number.

Conclusion

Unlike Income Tax, Professional Tax in India is a direct tax handled by the states and not the central government. Since Union territories are under the Central Government’s authority, they are free from the professional tax in India.

None of the nine union regions are thus compelled to pay. Moreover, the bulk of these establishments are rather small and contribute little to the economy; hence, they are exempt from this tax. To know more about Professional Tax Slab in Gujarat, consult a lawyer online now.

Payment of Professional tax is necessary if you reside in a state where professional tax is levied. To know more about Professional Tax Slab in Gujarat, consult a tax lawyer now.

Bhavya Choudhary

Written by

Bhavya Choudhary

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