Resources - Professional Tax

Profession tax is a state specific tax. Every state will have a slab of rates. PT is collected on profession, trades, and callings or holds any appointment public or private or is employed in any manner in the state for the benefit of the state. Every employee has to pay profession tax based on his earning. Employer deducts the tax from the salary and remits to state government account every month in the specified form.

Slab details of different states

West Bengal

As already explained, Profession tax is a state specific tax and every state may have different slab. Subject to the provisions of article 276 of the Constitution of India and of this Act, there shall be levied and collected a tax on professions, trades, callings and employments for the benefit of the State.

Every person excluding firms and Hindu Undivided family engaged actively or otherwise in any profession, trade, calling or employment and falling under one or the other of classes mentioned in the act shall be liable to pay to State Government the tax at the rate specified, provided that, tax so payable in respect of any one person shall not exceed two thousand and five hundred rupees in any year.

Employer’s liability to deduct and pay tax on behalf of employees:
Employer is liable to pay the tax of his/her employees. Profession tax amount shall be deducted by the employer from the salary or wage payable to employee before such salary or wage is paid to the employee. And such employer shall, irrespective of whether such deduction has been made or not when the salary or wage is paid to such persons, be liable to pay tax on behalf of all such persons.

Provided that, if the employer is an officer of government, the state government may, notwithstanding anything contained in this Act, prescribe by rules the manner in which such employer shall discharge the said liability.

Return:
Every employer registered under this act, shall furnish to the assessing authority with in sixty days of the expiry of the year, a return in the prescribed form showing therein the salaries and wages paid by him and the amount of tax deducted by him in respect thereof during the preceding year.

Penalty for non-payment of tax:
If an enrolled person or a registered employer fails without a reasonable cause, to make payment of any amount of tax within the required time or date as specified in the notice of demand the assessing authority may, after giving a reasonable opportunity of making representation, impose upon him a penalty not exceeding fifty percent of the amount of tax due.