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PT Return Filing Service
Easy Labour Laws Compliance
If you ever take a look at your payslips you will notice that there is a small deduction mentioned along with all the HRA, conveyance and basic salary break ups. This deduction is generally to the tune of INR 200 or so and is called the professional tax. This tax is generally different for each state and in certain place you may notice that there is no deduction made under this heading. So the question is, what is professional tax?
Professional Tax
If you ever take a look at your payslips you will notice that there is a small deduction mentioned along with all the HRA, conveyance and basic salary break ups. This deduction is generally to the tune of INR 200 or so and is called the professional tax. This tax is generally different for each state and in certain place you may notice that there is no deduction made under this heading. So the question is, what is professional tax?
What is Professional Tax?
The respective state governments in India levy the professional tax on income from profession or employment. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government. In case of other class of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one state to another, but it has a maximum limit of INR 2500/- per year.
Professional Tax Registration and Returns
Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. Professional tax needs to be deducted from the salary or wages paid amount. Application for the Registration Certificate should be made to the assesse's state tax department within 30 days of employing staff for his business. If the assesse's has more than one place of work, then application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.
If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).
Professional Tax Applicable States Across India
The states which impose professional tax in India are listed below: (Hover over the state name for more details)
Applicable State
- Andhra Pradesh
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 15000 ₹ 0.00 Nil Between 15001 To 20000 ₹ 150.00 Above 20001 ₹ 200.00 - Assam
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 10000 ₹ 0.00 Nil Between 10001 To 15000 ₹ 150.00 Between 15001 To 25000 ₹ 180.00 Above 25000 ₹ 208.00 - Bihar
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 300000 ₹ 0.00 Nil Between 300001 To 500000 ₹ 1000.00 Between 500001 To 1000000 ₹ 2000.00 Above 1000001 ₹ 25000.00 - Gujarat
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 12000 ₹ 0.00 Nil Above 12000 ₹ 200.00 - Jharkhand
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 300000 ₹ 0.00 Nil Between 300001 to 500000 ₹ 120.00 Between 500001 to 800000 ₹ 180.00 Between 800001 to 1000000 ₹ 2100.00 Above 1000001 ₹ 2500.00 - Karnataka
Professional Tax Rates Salary (INR) PT Amount Remarks Above 24999 ₹ 200.00 - Kerala
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 11999 ₹ 0.00 Nil Between 12000 to 17999 ₹ 120.00 Between 18000 to 29999 ₹ 180.00 Between 30000 to 44999 ₹ 300.00 Between 45000 to 59999 ₹ 450.00 Between 60000 to 74999 ₹ 600.00 Between 75000 to 99999 ₹ 780.00 Between 100000 to 124999 ₹ 1000.00 Above 125000 ₹ 1250.00 - Madhya Pradesh
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 225000 ₹ 0.00 Nil Between 225001 to 300000 ₹ 1500.00 INR 125 Per Month Between 300001 to 400000 ₹ 2000.00 INR 166 per Month for 11 Month and INR 174 for 12th Month Above 400001 ₹ 2500.00 INR 208 Per Month for 11 Month and INR 212 for 12th Month - Maharashtra
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 7500 ₹ 0.00 Nil for Male Employees Between 7501 to 10000 ₹ 200.00 For Male Employees Above 10001 ₹ 300.00 Employer has to deduct on Fabruary Month only for Male Employees Upto 25000 ₹ 0.00 Nil for Female Employees Above 25000 ₹ 200.00 For Female Employees Above 25000 ₹ 300.00 Employer has to deduct on Fabruary Month only for Female Employees - Manipur
Professional Tax Rates Salary (INR) PT Amount Remarks Upto 50000 ₹ 0.00 Nil Between 50001 to 75000 ₹ 1200.00 Between 750001 to 125000 ₹ 2400.00 Above 125000 ₹ 2500.00 - Meghalaya
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 50000 ₹ 0.00 Nil Between 50001 To 75000 ₹ 200.00 Between 75001 To 100000 ₹ 300.00 Between 100001 To 150000 ₹ 500.00 Between 150001 To 200000 ₹ 750.00 Between 200001 To 250000 ₹ 1000.00 Between 250001 To 300000 ₹ 1250.00 Between 300001 To 350000 ₹ 1500.00 Between 350001 To 400000 ₹ 1800.00 Between 400001 To 450000 ₹ 2100.00 Between 450001 To 500000 ₹ 2400.00 Above 500001 ₹ 2500.00 - Mizoram
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 5000 ₹ 0.00 Nil Between 5001 To 8000 ₹ 75.00 Assesee may pay in lump sum INR 900 per annum Between 8001 To 10000 ₹ 120.00 Assesee may pay in lump sum INR 1440 per annum Between 10001 To 12000 ₹ 150.00 Assesee may pay in lump sum INR 1800 per annum Between 12001 To 15000 ₹ 180.00 Assesee may pay in lump sum INR 2160 per annum Above 15001 ₹ 208.00 Assesee may pay in lump sum INR 2500 per annum - Nagaland
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 4000 ₹ 0.00 Nil Between 4001 To 5000 ₹ 35.00 Between 5001 To 7000 ₹ 75.00 Between 7001 To 9000 ₹ 110.00 Between 9001 To 12000 ₹ 180.00 Above 12001 ₹ 208.00 - Odisha
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 160000 ₹ 0.00 Nil Between 160001 To 300000 ₹ 125.00 Above 300001 ₹ 200.00 Above 300001 ₹ 300.00 Employer has to deduct on March month only - Puducherry
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 99999 ₹ 0.00 Nil Between 100000 To 200000 ₹ 250.00 Between 200001 To 300000 ₹ 500.00 Between 300001 To 400000 ₹ 750.00 Between 400001 To 500000 ₹ 1000.00 Above 500001 ₹ 1250.00 - Punjab
Professional Tax Rates Salary(INR) PT Amount Remarks Above 250000 ₹ 200.00 All such persons who are assessable under the Head Income from Salaries and/ or Wages as per the Income Tax Act, 1961 - Sikkim
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 20000 ₹ 0.00 Nil Between 20001 To 30000 ₹ 125.00 Between 30001 To 40000 ₹ 150.00 Above 40001 ₹ 200.00 - Tamil Nadu
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 21000 ₹ 0.00 Nil Between 21001 To 30000 ₹ 135.00 Between 30001 To 45000 ₹ 315.00 Between 45001 To 60000 ₹ 690.00 Between 60001 To 75000 ₹ 1025.00 Above 75001 ₹ 1250.00 - Telangana
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 15000 ₹ 0.00 Nil Between 15001 To 20000 ₹ 150.00 Above 20001 ₹ 200.00 - Tripura
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 7500 ₹ 0.00 Nil Between 7501 To 15000 ₹ 1800.00 INR 150 Per Month Above 15001 ₹ 2496.00 INR 208 Per Month - West Bengal
Professional Tax Rates Salary(INR) PT Amount Remarks Upto 8500 ₹ 0.00 Nil Between 8501 To 10000 ₹ 0.00 Nil Between 10001 To 15000 ₹ 110.00 Between 15001 To 25000 ₹ 130.00 Between 25001 To 40000 ₹ 150.00 Above 40001 ₹ 200.00
Not Applicable States
- Central
- Andaman and Nicobar Islands
- Arunachal Pradesh
- Chandigarh
- Chhattisgarh
- Dadra and Nagar Haveli
- Daman and Diu
- Delhi
- Goa
- Haryana
- Himachal Pradesh
- Jammu and Kashmir
- Ladakh
- Lakshadweep
- Rajasthan
- Uttar Pradesh
- Uttarakhand
Exemptions
There are exemptions provided for certain individuals to pay Professional Tax under the Professional Tax Rules.
The following individuals are exempted to pay Professional Tax:
- Parents of children with permanent disability or mental disability.
- Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
- Badli workers in the textile industry.
- An individual suffering from a permanent physical disability (including blindness).
- Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
- Parents or guardians of individuals suffering from mental disability.
- Individuals, above 65 years of age.
Who is Responsible for Deducting Professional Tax?
The employer is responsible for deducting professional tax from the salaries of his employees and paying the amount so collected to the appropriate state government. An employer has to furnish a return to the tax department in the prescribed form within the specified time along with proof of tax payment.
Professional Tax in India
The maximum amount of Professional Tax that can be imposed by any state in India is INR 2500/-. Total amount of Professional Tax paid during the year is allowed as deduction under the Income Tax Act. The Professional Tax is a source of revenue for the state governments which helps in implementing schemes for the welfare and development of the region. Professional Tax is deducted by the employers from the salary of the salaried employees, and is deposited with the state government. Other individuals, pay it directly to the government or through the local bodies appointed to do so.
Consequences
- Fails to Get Registration
He will be liable to a penalty for the period during which he remains unregistered.
- Fails to Deposit to the Government/ Late Deposition
He will be liable to a penalty for the period during which he remains unregistered.
- On-Deposition of Amount.
The officials have power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach his bank account also. In serious cases, prosecution case also can be filed.
Labour Welfare Fund Return
Easy Labour Laws Compliance
The establishments registered with the Labour Welfare Fund of respective state governments need to pay the LWF Contribution and file the periodical LWF Returns. We help you to comply with the requirements of the LWF act of the respective state.
What is Labour Welfare Fund?
Labour welfare is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.
To justify the above statement, various state legislatures have enacted an Act exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from one state to another.
Scope of Labour Welfare Fund Act
The scope of this Act is extended to housing, family care & worker's health service by providing medical examination, clinic for general treatment, infant welfare, women’s general education, workers activity facilities, marriage, education, funeral etc. State specific Labour Welfare Funds are funded by contributions from the employer, employee and in few states, the government also.
Applicability of the Act
In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories
The below table depicts the states in which the Act has been implemented and not implemented:
Applicable State
- Andhra Pradesh
- Chandigarh
- Chhattisgarh
- Delhi
- Goa
- Gujarat
- Haryana
- Karnataka
- Kerala
- Madhya Pradesh
- Maharashtra
- Odisha
- Punjab
- Tamil Nadu
- Telangana
- West Bengal
Not Applicable States
- Central
- Andaman and Nicobar Islands
- Arunachal Pradesh
- Assam
- Bihar
- Dadra and Nagar Haveli
- Daman and Diu
- Himachal Pradesh
- Jammu and Kashmir
- Jharkhand
- Ladakh
- Lakshadweep
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Puducherry
- Rajasthan
- Sikkim
- Tripura
- Uttar Pradesh
- Uttarakhand
The Labour Welfare Fund Act is not applicable to all category of employees working in the establishment. It depends upon the wages earned and designation of the employee. Also, one needs to check the total number of employees working before extending this Act to their establishment. The applicability of the Act based on the number of employees may differ depending upon state specific Act.
How Does the Process Work?
The contribution in the Labour Welfare Fund may be made annually, half yearly or monthly. The frequency may differ depending upon the state specific Act. Further, if the frequency is half yearly the period of deduction shall be divided into two consecutive periods as per the date mentioned in the state specific Act. The employer needs to make the deduction from the salary of the employee and submit the same to the Labour Welfare Fund board in the prescribed form before the due date.
Labour Welfare Fund Expenditure
In general the money in the Fund may be utilized by the Board to defray expenditure on the following:
EPF registration is mandatory for the following type of establishments:
- Educational facilities for the children of the workers.
- Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families.
- Transport facilities to the workers for commuting to work.
- Recreational facilities in form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment.
- Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.
- Excursions, tours and holiday homes.
- Home industries and subsidiary occupations for women and unemployed persons.
- Reading rooms and libraries.
- Vocational training.
- Nutritious food to children of employees.
