FAQs - Profession Tax

Every member of the ceased Family Pension A Designated Authority is the authority which levies and collects the tax from a person liable to pay professional tax.
 

A. For State and Central Government Offices, Public Sector Undertakings of Governments, Panchayat and Grant-in-Aid Institutions, the State Government is the Designated Authority.

B. For all employers other than State and Central Government Offices, PSUs, Panchayats, and Grant in Aid Institutions, the Government of Gujarat has notified the jurisdictions of following designated authorities.

• District Panchayat:- Area of District Panchayat
• Municipality:- Area of Municipality
• Municipal Corporation:- Area of Municipal Corporation
• State Government:- All other area not covered under a Panchayat, Municipality.

 

Tax rate varies depending upon monthly salary / wage of an employee. The rates of tax vary from state to state.
 

 Yes all employees are liable to pay tax except those employees who are getting a salary of less than Rs. 3000/- per month.

Salary’ includes, in addition to basic salary, dearness allowance, all other remunerations received on regular basis, perquisites and profits in lieu of salary.
 

Any form of bonus and gratuity are not included in salary.
 

Employee himself is not required to pay this tax to the Designated Authority. It is his Employer who is required to deduct an amount equivalent to the employee’s tax liability from the monthly salary of the employee and pay the same in the Government Treasury, or at the place of payment declared by designated authority, if he is covered under entry 1B of Sch.1.
 

The Designated Authority has powers to recover such amount as arrears of land revenue from the defaulting employer under the Land Revenue Code. Such authority can also attach bank accounts of such employer, and can also file prosecution case (police case) under the provisions of the Act.