Professional Tax in Maharashtra

What is Professional Tax in Maharashtra - An Overview

Profession Tax is levied by the state government and is applicable to salaried employees and individuals. Employees working in an organization or establishment such as a factory would also have to go through the registration process of professional tax in Maharashtra.

Registration of Professional tax in Maharashtra is mandatory for businesses within 30 days of employing staff and for professionals within 30 days of starting their practice. The professional tax has to be deducted from the salary/wages paid. However, the amount of professional tax varies from state to state, and it is capped at Rs. 2500 per annum. If you have employees in more than one state, then in each state, professional tax registration is required.

Who Regulates Professional Tax in Maharashtra?

In Maharashtra, professional tax is governed by the Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975. If the employee or professional has a monthly income above the prescribed limit, they are liable to pay professional tax in Maharashtra. Professional tax payments can also be made online.

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Eligibility Criteria for Registration of Professional Tax in Maharashtra?

  • If the salary or wages of the employee exceed Rs. 10,000/- per month, the employer must register for professional tax in Maharashtra.
  • The employer in such circumstances is liable to deduct a portion of the wages under this act.
  • The employer must deduct the professional tax before the 20th of each month.
  • If the professional tax payable in Maharashtra is below Rs. 5000/- per month, the employer can opt to pay it within 20 days after the end of each quarter.
  • All employees must obtain a professional tax registration certificate from the relevant authorities.
  • All professionals or individuals listed from Sl. No.2 to 74 of the Schedule (Annexure 1) must obtain a Certificate of Enrollment from the Professional Tax Officer.

Professional Tax in Maharashtra - Exemptions

Individuals exempt from paying professional tax in Maharashtra include:

  • Senior citizens are exempt from professional tax.
  • All charitable and philanthropic hospitals or nursing homes located in districts below the taluk level except for Mumbai.
  • Directors of companies registered in Maharashtra and simultaneously nominated by state-controlled financing agencies or statutory bodies.
  • Foreign technicians employed in the state with appointments approved by the Government of India (exemption for two years from the joining date).
  • Members of the Armed Forces governed by the Army, Navy, and Air Force Acts.
  • Blind individuals earning salaries or wages.
  • Deaf and dumb individuals earning salaries or wages.
  • Single taxi or three-wheeler goods vehicle permit holders.
  • Institutions teaching Kannada or English shorthand or typewriting.
  • Physically handicapped individuals with at least 40% permanent disability (with certification from the HOD of a Government Civil Hospital).
  • Individuals with a single child who have undergone sterilization (certificate from the District Surgeon, Government Civil Hospital required).
  • Central Para-Military Force (CPMF) Personnel.
  • Educational institutions teaching up to 12th standard or Pre-University Education.