Legal Guide

What is the Professional tax slab in West Bengal?

by Bhavya Choudhary · 3 min read

professional tax slab in west bengal

Professional tax is a state tax applied on income earned from employment, a profession, a vocation, or a trade. Municipal Corporations in each state levy a professional tax based on set slab rates. 

Professional taxes are paid monthly or annually. In addition, it may be claimed as a salary deduction under Section 16 of the Income Tax Act. Different states have varying occupation tax rates and collecting procedures. This article examines the West Bengal professional tax and Professional tax slab in West Bengal. 

Eligibility

  • The “West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979” was approved by the West Bengal State Legislature for its inhabitants. 
  • There are two groups of individuals who are required to pay Profession Tax according to the Professional tax slab in West Bengal under the terms of the statute.
  • In the case of salaried individuals and wage earners, the employer (Public and Private Sectors, Government) deducts the Profession Tax from the pay or wage and is required to deposit it with the State Government. Salary is a dominant factor in determining the Professional tax slab in West Bengal.
  • For all other types of persons, the tax is the responsibility of the individual who has participated in work, a profession, a vocation, or a trade.

Exemption from Professional tax slab in West Bengal 

  • By issuing notifications, the State Government may exclude or decrease the tax liability for any category of individuals.
  • Currently, personnel of the armed services and the Indian Navy stationed anywhere in West Bengal are free from paying professional tax. The exemption also applies to anybody receiving salary or allowances from the Army, Air Force, or Navy.
  • Members of auxiliary forces or reservists serving anywhere in West Bengal and receiving salary and allowances as such are free from the Professional tax slab in West Bengal. 

Wages and Salaries

Everyone who earns a salary or wage must pay the professional tax in accordance with the Professional tax slab in West Bengal. The West Bengal State Tax on Professions, Trades, Callings and Employments Act of 1979 describes salaries and earnings below.

Included in salary and earnings are the following for determining the Professional tax slab in West Bengal:

  • Pay, Dearness Allowance, and any other allowances paid.
  • Regular compensations are paid in cash or any other kind.
  • Honoraria, perks, and profit in lieu of remuneration
  • Leave cashing amount blank
  • Concessional leave pay and subsistence allowance

Not included in salary and wages are the following for determining the Professional tax slab in West Bengal:

  • Medical reimbursement
  • Reimbursement of transportation costs and travel allowance
  • Apprentices get a wage under the Apprentices Act, while trainees receive a stipend.
  • Bonuses, gratuities, and ex-gratia payments are mandated by law.
  • A pension provided to an employee is not regarded to be compensation. Consequently, a retiree is not required to pay Professional tax on pension income.
  • It will also depend on the work contract whether one is required to pay professional tax or not. Consult a lawyer online to get your work contract drafted and to know more about it. 

Professional tax slab in West Bengal 

The ‘Schedule’ of tax rates according to the West Bengal State Tax on Professions, Trades, Callings, and Employments Act, 1979, is shown in the table. The professional tax must be paid in accordance with the Professional tax slab in West Bengal:

Registration

  • Every employer (other than government personnel) must apply for and get a Certificate of Registration in order to deduct the profession tax from his employees’ salaries or earnings. 
  • The tax must be deducted in accordance with Serial No. 1 of the Schedule in accordance with the Professional tax slab in West Bengal. 
  • Such an employer must submit an online registration application within ninety days of the date of responsibility. 
  • Employers having several workplaces under the authority of various authorities must submit separate registration applications. 
  • Nevertheless, the Commissioner of Profession Tax may permit a single registration for the whole of West Bengal. 
  • An employer who fails to apply for registration within 90 days of the date of the obligation shall incur a penalty of Rs 500 per month or a fraction thereof.

Conclusion 

Professional Tax in India, unlike Income Tax, is a direct tax administered by the states and not the national government. Since Union territories are under the jurisdiction of the Central Government, they are exempt from the professional tax in India.

Thus, none of the nine union areas are required to contribute. In addition, the majority of these enterprises are tiny and contribute little to the economy; hence, they are exempt from this tax. For additional information about the Professional Tax Slab in West Bengal, visit a lawyer online immediately.

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

Bhavya Choudhary

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Bhavya Choudhary

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