Every salaried person that is working for the government department usually makes Professional Tax Payment. However, it is not only government workers that pay this form of tax. Even those employees that work in non-governmental agencies also make the Professional Tax Payment. This payment comes as a tax which the State Government charges to its employees and other professional workers. Such workers like Lawyers, Doctors, Chartered Accountants, etc.
That is, it is charged to those who are doing a kind of business. You can get the regulations that are guiding this professional tax per a clause in section 2 of article 276 of Indian Constitution. Although many States receives Professional Tax Payment from salaried individuals, their rates differ from one another. However, no matter the State you are working in, the highest amount you can pay as the professional tax wouldn’t be above Rs. 2500. Moreover, the maximum of the annual remittance of professional tax is treated as deductibles under the income tax.
Thus, for this article, we are concerned with the provisions made in regards to Assam Professional Tax.
Individuals that are Taxable
The individuals who qualify to pay this tax are those involved in any form of business. Furthermore, any representative or agent who is partly or fully residing in the State is taxable. All of these people are liable to pay their professional tax in every financial year. The maximum rate they pay per annum should be Rs. 2500, while the minimum rate is Rs. 250.
Professional Tax Deductions
The professional tax deduction from salaried individuals is gotten from a part of their salary. When these deductions are made from their salaries, it is now delivered to their State Government. However, someone that is self-employed or working alone without any employee he or she is liable to pay tax. The concerned individual is liable to pay the professional taxes alone. If you are a non-employee, you can only register for your professional tax through a form application.
However, your application registration can only be released to you after the verification process. With your registration number, the person can now go to various banks to make payments.
Professional Tax Calculations
The basis for the professional tax calculations is tax slab and gross salary which is according to the Government prescriptions. It is only 15 States in India that use this tax system under its ambit.
Rates for the Income Tax Slabs
The rates for the Assam Income Tax Slabs are;
- If your monthly salary is below Rs. 10,000, you are not liable to pay tax.
- When your monthly salary is up to Rs. 10,001 or Rs. 15,000, your monthly payment will be Rs. 150.
- Furthermore, if you receive Rs. 15,001 or 24,999 as your monthly salary, your professional tax for the month is Rs. 180
- However, if your monthly salary exceeds Rs. 25,000, you are liable to pay Rs. 208 per month as professional tax.
Process of Registration
If you want to register for the professional tax payments in Assam, there are certain steps you must follow. Such steps as;
- Visit the Official Site
If you are an official taxpayer, there is a need for you to log on to www.CompanyVakil.com official website.
- Go to Online Registration and Click
You should click on the option of online registration. That is after clicking on the drop-down menu of the e-service box.
- Choose Professional Tax
The taxpayer should go to the lists of the act to choose Professional Tax.
- Choose Location and District
As the person paying the tax, you should click on the right location and district of your residence. As you select the appropriate one, also select you submit button.
- Application Form
When you are through with the submission option, you will then see the registration form appear on the screen.
- Fill in the Details
Make sure that you fill all the necessary details that are required in the registration form.
- Creation of your Acknowledgement Form
After you are through with the filling and submission of your application form, you will receive your acknowledgement number.
- Printing of the Receipt
You can get your printed receipt for the acknowledgement form when you click on ‘print’ option.
- Processes for Administration
On the receipt of the application form, there are certain processes which the department in-charge follows. Such steps like;
- Sending out Request
After your application form is received, the request is then sent over to the Superintendent of Taxes or Assistant Commissioner in charge.
- Appointment of Circle Incharge
The officer who is in charge of this section delegates the concerned circle to review your application. The Circle that is in charge will then verify the registration request completion. After that, they will then process your application form.
- Processing of the Application
The processing of your application involves remarks like order security, order enquiry hearing for your new registration. He or she can even select the final option for your registration approval.
- Creation of the Registration Number
After the above processes are completed, your registration number will be generated.
Those Exempted from Professional Tax Payment
This tax is not what everybody is liable to pay. There are some exemptions to the payments. Such as;
- If you are a person that has reached the age of 60 years, you are exempted from paying professional tax.
- People that are suffering from forty percent of blindness or any permanent disability physically will not pay.
- If you are a guardian or parent of a mentally or physically challenged child, you are exempted.
Professional Tax Penalties
- If by chance you did not receive your registration certificate in time, such employee will have to pay the sum of Rs.5 daily as a penalty. On the other hand, if you are self-employed, your penalty amounts to Rs. 2 for every day of the delay.
- In case of a payment delay, you will pay a penalty of 2% monthly. Furthermore, if you fail to pay the tax, an additional 10% penalty of your taxable amount will be included.
- Any delay while filing for returns results in Rs. 1,000 penalty. This penalty is charged if the payer files the returns within one month. However, failure to pay after one month will result to Rs. 2000 penalty.
- In the case of incorrect or false information, the amounting penalty will be three times the professional tax.
Professional Tax Payment is a must for every salaried individual or professional worker. It is also for those that carry out businesses of their own. Thus it is important to know what you should do by going through this article.