How to Pay Professional Tax Online?

Let us consider that you are a salaried employee. Every month you receive your salary which comprises several components such as – Basic salary, Conveyance expenses, House Rent Allowance (HRA), etc. There is a small amount which you may notice as a deduction below the above components. This deduction is usually to the tune of INR 200 and is known as professional tax. Professional tax varies from one state to another. In this article, we will answer the most asked question – How to pay professional tax online?

Everything You Know About Professional Tax Payments

Tax payments are expected of all the salaried individuals, it is determined by the gross monthly income, and as per the state where you are employed.

If for example you are a salaried individual in Maharashtra, and your monthly salary is Rs. 30,000. You will be expected to pay Rs. 200 tax every month. Every state has different tax slabs, and the employer deducts them beforehand.

What is Professional Tax?

A tax which is charged by the state government on the income of all individuals is known as the professional tax. It is usually a small amount. It is compulsory for all the individuals to pay the professional tax to the government. As various state governments have issued different slab rates for their state, the individuals need to follow the same while making the payment. Maximum limit for Professional tax to be charged on the income is restricted to INR 2500 per annum.

Key Takeaways

• Understanding the basic meaning of professional tax.
• The reader will be able to identify how the professional tax is collected and also distinguish why the professional tax varies for different people.
• In the article, the professional tax slab rates for various states is also listed.
• The steps for how to pay professional tax online is mentioned which the reader can follow for a smooth result.
• Lastly, the reader will also learn about the consequences of non-payment of professional tax.

So now that we have learnt about the key takeaways of this read, let us begin by learning about- ‘What is a professional tax?’ and then move on to how to pay professional tax online.

Who Needs to Pay Professional Tax?

If you want to understand how to pay professional tax online, let us first understand how you are under the category of a responsible person.

• For salaried employees, it is the duty of the employer to deduct the PT from the salary of its employees. Thereafter, the employer is responsible to pay the PT to the State Government.
• Those who run firms such as partnerships, proprietary and corporates also need to pay the PT to carry out their profession/trade to the State Government.
• An enrolment certificate needs to be obtained by the employer to deduct the PT from the employee’s salary. Also, a PT registration certificate is needed for successfully making a payment on his profession/trade.
• Nowadays, freelancers are also covered under the purview of PT. So ideally, freelancers also need to register themselves as per their state guidelines and pay the tax.

Certain states also offer exemption to individuals from PT. For example, guardians of an individual suffering from mental illness are exempted from PT as per Karnataka state guidelines.

Professional Tax Registration and Process

Professional tax is collected by the state Government. It is levied on each salaried individual, including all professions be it freelancers, corporate workers, etc. Commercial tax department is responsible for collecting professional taxes, after which it reaches the Municipality Corporation Fund.

The process of tax registration may differ according to the state. Each state has a different tax slab rate, if the business owner and the employees are in different state regions, the owner needs to get a professional registration according to each state.

To get registered as a professional tax payee, you need to get registered in the local tax office of the specified state. Or it can be completed online, by visiting the state’s official website. The professional pay calculation can be done in the prescription form. All the payments and calculations made should ideally be audited by a CA (Chartered Accountant). As for the employees, the employers deduct the tax from their salaries beforehand.

Did You Know?

If you are a salaried employee, you must notice a tax deduction of a certain amount is made every month from your salary amount, this deduction accounts for the professional tax, which is paid to the state government each month by the employer.

Professional Tax Slabs in Various Indian States

For those inquiring about how much professional tax is deducted from salary, here is the answer –

Professional Tax Rates Applicable in the State of Maharashtra:

Professional Tax Rates applicable in the State of Gujarat:

Professional Tax Rates applicable in the State of West Bengal:

How to Make a Professional Tax e-Payment:

If you are looking for an alternative to how to pay professional tax online – your search ends here. The Government Receipt Accounting System facility is available for it. Here the payments can be made via NEFT/RTGS.

• The user needs to visit the sales tax portal of the state’s website
• After the site loads, the type of tax for which the user has to make payment needs to be selected.
• For PTEC, users have to submit the 11 digit TIN which starts with 99 without the suffix P.
• For PTRC, users have to submit the 12 digit TIN starting with 27 without the suffix P.
• Then the user can click on the ‘Submit’ option.
• Users will also have to provide their work location & contact details. In case the employer’s information is not displayed on the site then users can submit it manually too.
• Next step is to choose the payment period.
• Users must carefully enter the payment amount (after validating it with the slab rates) and select the payment mode.
• Once the captcha has been entered, users can click on ‘Proceed’.
• Government Reference Number – GRN will be generated on the screen. You need to click on ‘Ok’ to proceed to the bank’s website for payment.
• If you are wondering how to download professional tax challan then you need not worry.
• After payment has been successfully made, an E-receipt by the name of Challan MTR 6 will be available for download. This will solve the concern of how to download professional tax challan.
• It can be downloaded & saved for further reference.
• A user can visit the GRAS website to view their transaction history anytime.

Word to Remember

Slab Rate- The amount of tax an employee pays according to their income.

Online Professional Tax Payment Process

If you want to know how to pay professional tax, kindly follow the below steps –

• Visit the State Government’s GST Department website.
• Select the ‘e-Payments’ and choose the option based on status of PT.
• Next, you are required to fill in the PAN/TAN/TIN details along with the captcha.
• For employers, the PTRC Act option needs to be selected. Companies need to get PTEC for themselves and for any subsidiary.
• Next fill in the location, amount of PT, financial year and period.
• You may also provide your contact number.
• Verify the details submitted and click on ‘Proceed to Payment’ option.
• Payment can be made via debit & credit cards.
• Post payment, you can download the acknowledgement receipt which gets generated and store it for record purposes.

Who is Responsible for Collecting Professional Tax?

The Commercial Tax Department is responsible for collecting the Professional tax. The cumulative tax collected by each Commercial Tax department is collectively accounted for in the municipal corporation fund.

Conclusion

It is advisable to understand the guidelines issued by your state to learn more about the professional tax slab rates. Once you learn the basic concept, the process on how to pay professional tax online is quite standard and easy to follow. Individuals have been able to make seamless payment transactions from the comfort of their homes/offices!

FAQs