Introduction

Professional tax in Maharashtra is a tax levied by the Maharashtra State Government on income earned through employment, profession, trade, or business. Under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, this tax is governed by the Maha GST Portal. Regulations for imposing, collecting, and administering professional taxes are outlined in this law. 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 of the Professional tax in Maharashtra 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 Maharashtra?

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

• Employers: As per Section 2(b) and Rule 4 of the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1976, any employers (Organizations & Businesses) who have salaried employees in their company or organization must deduct professional tax from the employees' salaries every month. This deduction amount is remitted to the State Government (Maharashtra Government). According to Rule 13, if the employer fails to deduct and remit professional tax to the government, they face penalties.
• Self-Employed Individuals: As per the Act’s Section 2(c) and Rule 4, any individuals (Professionals, traders, freelancers, business owners, etc.) who earn above the prescribed threshold are responsible for deducting Professional tax in Maharashtra. For this, he/she must register themselves and obtain a PTEC (Professional Tax Enrollment Certificate) first. Professional Tax payments for self-employed persons in Maharashtra are mainly made yearly.

Different Types of Professional Tax Certificate

According to Rule 6 of PT Act Maharashtra, there are two types of PT certificates. These are as follows:

• Professional Tax Enrollment Certificate (PTEC):

  The Professional Tax Enrollment Certificate (PTEC) is a registration for business entities like companies, partnership firms, sole proprietors, and individual professionals. It is required to pay professional tax for both the business entity and its directors. Form V is used for registering as an employer.

• Professional Tax Registration Certificate (PTRC):

  Professional Tax Registration Certificate, commonly known as PTRC, is used by the employer to deduct the professional tax from the respective employee's salary and then deposit the same to the authorized state authority. Form II is used for registering as a self-employed individual.

Exemptions for Professional Tax Maharashtra Online

As per Section 6 and Rule 12 of Maharashtra PT Act (Maharashtra State Tax on Professions, Trades, Callings, and Employment Act, 1976), only certain individuals are exempted from paying Professional tax:

• Any person earning less than ₹15,000/month.
• Any senior citizen (above the age of 65).
• Parents and guardians of disabled children.
• Any disabled person (at least 40% disabled).
• Armed Forces personnel.

Note: To claim exemptions, individuals or businesses must submit relevant documents as per Form VIII under Rule 12.

Document Required for Professional Tax Registration Maharashtra

There are several documents required during the Professional Tax Registration in Maharashtra. Here is the complete list given in the table below according to the employed or registration type:

Stepwise process of Professional Tax Registration and Filing in Maharashtra

Before Professional tax filing, a company or individual must register themselves to obtain PTRC (For Employer) and PTEC (for employee/individual). The stepwise process on Maha GST Portal is as follows:

Process of Professional Tax Registration in Maharashtra

1. Step 1: Visit the “Maha GST Portal (Maharashtra Goods and Services Tax Department)”.
2. Step 2: Choose the correct and appropriate option for registration based on your category. If you are an employer, you need to select PTRC, and if you are a self-employed individual, you need to go with PTEC.
3. Step 3: Once you have selected the category, fill the form (Form V for employers and Form II for Self-employed Individuals) accurately with relevant details and information including business or personal details, employee details (only for employers), profession, and income.
4. Step 4: Attach all the required documents (listed above) to complete the registration process.
5. Step 5: Once the form is completed with appropriate details and documents, you will need to pay registration fees (if applicable).
6. Step 6: After form submission, once the government verifies all the details, they will issue the PTRC (Professional Tax Registration Certificate) or PTEC (Professional Tax Enrollment Certificate).

Process of Professional Tax Filing in Maharashtra

1. Step 1: Log in to the Maha GST Portal (Maharashtra Goods and Services Tax Department) using the credentials created during registration.
2. Step 2: Select the relevant filing period (monthly for employers, annually for self-employed individuals).
3. Step 3: Complete the relevant tax filing such as Form VII for monthly filing by employers and Form VII-A for annual filing by self-employed individuals. Enter income details (or salary details for employers) and calculate the professional tax payable.
4. Step 4: Generate the payment challan and make the payment using online banking or other available payment methods.
5. 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 Maharashtra Tax slab

The complete tax slab of Professional tax Maharashtra, which is provided on the Maha GST Portal, is mentioned below:

Professional Tax Maharashtra Due Dates

Penalties with Respect to Professional Tax Maharashtra

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 Maharashtra 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