Professional Tax in Gujarat: Tax Slab, Payment, Due Dates & Applicability

Introduction

It is a state-imposed tax on salaried employees, professionals, and business owners in Gujarat, with compliance essential in cities such as Ahmedabad, Surat, Baroda and Rajkot. Under the Gujarat Professional Tax Act, 1976, the Gujarat Government levies PT. Salaried employees, individuals who are self-employed, and business owners are all subject to the tax. In this article we will get a complete understanding over the Professional tax in Gujarat including its applicability, types, documents, registration and filing process, due date and penalties. Whether you are a business or an individual, Bizfoc will help you navigate the complexities of professional tax, from registration to filing.

Who is Responsible for deducting Professional Tax in Gujarat?

Below mentioned two categories are responsible for deducting and remitting professional tax in Gujarat:

• Employers: As per the Gujarat PT Act, any employers (Organizations & Businesses) who have salaried employees in their company or organization must deduct professional tax from the employees salaried every month. This deduction amount is remitted to the State Government (Gujarat Government). If the employer fails to deduct and remit professional tax to the government, they face penalties.
• Self-Employed Individuals: As per the Gujarat PT Act, any individuals (Professionals, traders, freelancers, business owners, etc.) who earns above the prescribed threshold are responsible for deducting Professional tax Gujarat. For this, He/she must register themselves and obtain a PTEC (Professional Tax Enrollment Certificate) first. Professional Tax payments for self-employed persons in Gujarat are mainly made yearly.

Different Types of Professional Tax Certificate

There are two types of PT certificate. These are as follow:

• Professional Tax Enrollment Certificate (PTEC): The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies, partnership forms, sole proprietors, and individual professionals. It is required to pay professional tax for both the business entity and its directors.
• Professional Tax Registration Certificate (PTRC): The Professional Tax Registration Certificate, commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee salary and then deposit the same to the authorized state authority.

Exemptions for Professional Tax in Gujarat

As per the Gujarat Professional Tax Act (under Schedule I, amended by Gujarat Act No. 10 of 2008), the below-mentioned categories of individuals are exempt from filing of professional tax in Gujarat:

• Those companies which have been wound up in compliance with the Companies Act 1956.
• Liquidated co-operative societies from the date liquidation proceedings begin.
• In primary cooperative societies, the members carry out the society's activities through their own labor.

Document Required for Professional Tax Registration Gujarat

The applicant shall produce/provide the following documents along with the application for Professional Tax Registration:

• Photo
• PAN Card (Photocopy)
• Trade certificate (example - GST)
• Rent Agreement (Photocopy)
• Salary/wage statement of the employees
• Current bank account copy of the employer/organization/company
• MoU or Partnership deed
• Other required documents etc.

Stepwise process of Professional Tax Registration and Filing in Gujarat

Before Professional tax filing, a company or individual must register themselves. The stepwise process is as follow:

Process of Professional Tax Registration in Gujarat

• Step 1: Visit to the “Gujarat Commercial Taxes Department’s Official Portal”.
• Step 2: After selecting the appropriate option and filling it accurately with relevant details and information including business or personal details, employee details (only for employers) profession, and income.
• Step 3: Attach all the required documents (listed above) to complete the registration process.
• Step 4: After this form submission, once the government verifies all the details will issue a certificate.

Process of Professional Tax Filing in Gujarat

• Step 1: Log in to the Gujarat Commercial Taxes Department’s Official Portal using the credentials created during registration.
• Step 2: Select the relevant filing period (monthly for employers, annually for self-employed individuals).
• Step 3: Enter all the details such as income or employee salary details (for employers) and the corresponding professional tax payable. For employers, the tax will be automatically calculated based on salary slabs.
• Step 4: Generate the payment challan and make the payment using online banking or other available payment methods.
• Step 5: Submit the return online after completing the payment. Ensure that the return is filed before the due date to avoid penalties.

Professional Tax in Gujarat Tax slab

The complete tax slab of Professional tax Gujarat mentioned below:

Professional Tax in Gujarat Payment Due Dates

Penalties with Respect to Professional Tax in Gujarat

The below mentioned are the applicable penalties:

Why to Choose Bizfoc?

Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.

Conclusion

The aspect of professional tax in Gujarat plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax which is to be done by the employers of any profession or trade towards the respective legislation.

Frequently Asked Questions