Legal Guide

Learn all about Professional Tax Payment Online in Mumbai 

by Saket Sharan · 3 min read

professional tax payment online mumbai

Introduction

The Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975, deals with professional tax payment online in Mumbai. It prescribes individuals and organizations such as Companies, Sole Proprietorships, Partnership Firms, Societies, Associations of Persons, Hindu Undivided Families (HUF), self-employed, salaried individuals are bound by the act to pay a professional tax payment in Mumbai on their income.

 If the person is a salaried individual, the tax is automatically deducted from their salary, and consequently, the aggregate tax is paid by the employer; if a person is a non-salaried individual, in that scenario, there is an option to pay professional tax payment online Mumbai.

Procedure for Professional Tax Payment Online Mumbai 

In order to pay the professional tax online in Mumbai, one needs

to obtain an Enrollment Certificate in the city.

1. If you are paying for a PTEC, you need to visit the https://mahagst.gov.in/en website and then select the Ptec e-payment link.

2. The next step would be selecting the e-payment option after logging in using your TIN number.

3. After that, the MTR Form No. 6 Challan will be displayed by default, and it shall include the TIN (Tax Information Network) and

with it the dealer’s name.

4. You must choose the type of e-payment (PTEC, PTRC,

etc.), the payment period, the amount being paid, and, accordingly, the location under which the person is registered. For the form to be accepted, each and every information box must be filled correctly.

5. PTEC (Professional Tax Enrollment Certificate) holders shall pay their taxes using Form ID ‘VIII.’ Select ‘Other’ and also the relevant remark from the adjacent drop-down box for others.

6. After submitting the form, the Government Request Number will be generated, commonly referred to as GRN. Complete the transaction

by clicking Pay.

7. You should preserve the payment receipt of professional tax paid online because it serves as proof of payment which can be shown to the authorities if need be.

Documents Required for E-Payment of Professional Tax

  • Aadhar Card Information
  • Passport Sized Photograph
  • Utility Bills
  • PAN Card
  • Information associated with the Business
  • Mobile and Email ID of Individual
  • Information on Employees at the
  • Workplace
  • Canceled cheque
  • Date of incorporation of a Business
  • Photo Signature of a Taxpayer

Tax Slab Rates for Professional Tax Payment Online Mumbai:-

The tax slab rates for professional tax in Mumbai to be paid online are as follows:

Provision for Exemptions from professional tax payment online Mumbai

1. For the parents whose children are suffering from mental disability or permanent disability, the provision is also extended to parents whose children suffer from permanent disability

2. Members of the forces as defined within the Army Act, 1950, the Air Force Act, 1950, and the Navy Act, 1957.

3. Badli workers in the textile industry.

4. People who have a permanent physical disability 

5. The women who are employed in the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.

6. People who are above sixty-five years of age.

Important details you shouldn’t miss while Professional Tax Payment Online Mumbai.

Due Date

  • For the entities enrolling before the commencement of the year or getting enrolled before 31st May of the financial year, the last date of the profession tax payment is 30th June of that year itself.
  • For the entities, which get enrolled after 31st May of the year, they’re mandated to pay the profession tax within one month of the date of enrollment.

Rebates

  • Indian citizens who are above the age of 65 is exempted from professional tax.
  • Handicapped persons who suffer from more than 40% of disability and parents of mentally retarded or physically disabled children are also exempted from the professional tax in Maharashtra.

Penalties for Non-Payment of professional tax payment online Mumbai

The Maharashtra Profession Act (1975) provides for the imposition of a penalty if a liable entity fails to pay the tax in Mumbai.

  • If any legally liable entity delays in enrollment under the professional tax, provide false or inaccurate information, or delays in professional tax payment, that entity can be held liable and, as such, will have to be susceptible to paying the penalty under the Maharashtra Profession, Trades, Callings, and Employments Act (1975) which shall be adjudged by the assessing officer.
  • As per the act, if an employer fails or delays the profession tax payment, he is duty-bound to pay simple interest at the rate of two percent per month of the amount of tax due.

Conclusion

If you are a professional who is working in Mumbai, you are bound by law to pay a professional tax. Looking at it from a nationwide perspective, this tax is not imposed in every state, and each state has different professional tax rates and collection mechanisms. 

The power to impose this tax is given to the state by Article 276 of the Indian Constitution, which states, “There shall be levied and collected a tax on professions, trades, callings, and employments, in accordance with the provisions of this Act.”.

Hence all the people who are engaged in any profession, trade, calling, or employment and falling under one or the other of the classes mentioned in the second column of the Schedule shall be liable to pay the State Government tax at the rate mentioned against the class of such persons in the third column of the said Schedule.

For online legal advice regarding professional tax payable in work contracts, consult a professional lawyer.

Saket Sharan

Written by

Saket Sharan

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