Professional Tax in Assam - Tax Rates, Payment Process & Due Date

The State Governments in India charge a professional tax on salaried professionals working in non-government or government establishments and other professionals like doctors, lawyers, chartered accountants, etc. Clause (2) of Article 276 of the Indian Constitution forms the basis depending on which the government applies the regulations concerning this tax. This professional tax varies across states.

This article will provide a detailed insight into the various vital aspects of professional tax in Assam. Scroll through to know more!

What Is Professional Tax in Assam?

The Assam Tax on Professions, Trades, Callings and Employment Act, 1947 (“Assam PT Act”) applies to the entire state of Assam. The government enacted it to levy tax on trades, professions, employments, and callings.

Who Is Liable to Pay Professional tax in Assam?

All individuals who are involved in trading either by themselves or by a representative or an agent who partly or wholly belongs to the state of Assam are liable to pay Professional tax in Assam for every financial year.

The minimum tax rate amounts to ₹250, and the maximum rate is ₹2500 per annum.

What Are the Professional Tax Rates in Assam?

Given below are the professional tax rates applicable in the state of Assam depending on various classes of individuals -

1. Class of Individuals - Salary and Wage Earners

Monthly Wages or Salaries of Individuals (With Effect from 15th October 2014)	Tax Rate
Up to ₹10000	Nil
Above ₹10000 but less than ₹15000	₹150 per month
₹15000 or more but lower than ₹25000	₹180 per month
₹25000 and above	₹208 per month

2. Class of Individuals –

Medical practitioners that include dentists and medical consultants
Legal practitioners, including Notaries Public and Solicitor
Principal Agents, Chief Agents, loss Assessors or Special agents and Surveyors who are licensed or registered under Insurance Act 1938 (4 of 1938)
Professional and technical consultants, which includes engineers, tax consultants, architects, actuaries, management consultants, chartered accounts
Any other individual engaged in any calling, profession, employment, or trade but not mentioned in some other entry of the Schedule

Annual Gross Income in the Profession of Any Individual Mentioned Above (With Effect From 15th October 2014)	Tax Rate
Up to ₹120000	Nil
Above ₹120000 but less than ₹180000	₹1800 per annum
₹180000 or more but lower than ₹300000	₹2160 per annum
₹300000 or above	₹2500 per annum

Along with these, individuals must take note of the below-mentioned conditions -

The societies offering education to mentally and physically challenged individuals need not pay taxes under this Act.
Individuals who are a recipient of any literary, sports or cultural pension need not pay taxes under this Act even if they are engaged in any other trade, profession, employment or callings.

3. Class of Individuals – Dealers Including Industry or Mill Owners Within the Meaning of a Sales Tax Law in Assam

Annual Gross Turnover of All Sales (With Effect from 1st April 2008)	Tax Rate
Up to ₹ 400000	Nil
Above ₹400000 and up to ₹700000	₹1000 per annum
Over ₹700000 up to ₹1000000	₹1500 per annum
Above ₹1000000	₹2500 per annum

4. Class of Individuals – As defined in the Factories Act 1948 (63 of 1948), Factory Occupiers Who Are Not Dealers Included in the Entry Mentioned Above (3)

Occupiers of Factories	Tax Rate
Where a maximum of five workers are working	₹350 per annum
Where the number of workers is five or above but lower than fifteen	₹2000 per annum
Where the number of workers is over fifteen	₹2500 per annum

5. Class of Individuals – Establishment and Shop Employers Within the Meaning of the Assam Shops and Establishment Act 1971 and Who Are Not Dealers Included in the Entry Mentioned Above (3)

Employers of Establishment	Tax Rate
Which contains zero employees	Nil
Where a maximum of five individuals are employed	₹300
Where the number of individuals employed is over five, and the maximum limit is ten	₹1500 per annum
Where over ten individuals are employed	₹2500 per annum

6. Class of individuals – Permits Holders for Transport Vehicles Granted Under the Motor Vehicles Act, 1988 (59 of 1988)

Transport Vehicles That Are Adopted or Utilised for Reward or Hire	Tax Rate
With respect to every taxi owner and four-wheeler small goods vehicles meant for carrying either passenger or goods	₹500 per annum
With respect to every bus or truck (given that the total amount that the same holder must pay is not more than ₹2500)	₹2500 per annum

7. Class of Individuals – Banking Organisations as Defined in the Banking Regulation Act, 1949 (10 of 1949)

Type of Banks	Tax Rate
Scheduled banks	₹2500 per annum
Other banks	₹2500 per annum

8. Class of Individuals – Self-employed Individuals in the Motion Picture Industry

Designation of Individuals	Tax Rate
Assistant directors, Assistant recordists, Assistant editors, Dancers, Assistant Cameraman, Production Managers, Junior Artist, and Musicians	₹700
Actors and Actresses (excluding junior artists), Directors, Editors, Playback Singers, Recordist, still Photographers and Cameraman	₹2000

9. Some Other Classes of Individuals

Classes of Individuals	Tax Rate
Members of Stock Exchange who are recognised under the Securities Contracts (Regulations) Act 1956 (42 of 1956)	₹2500 per annum
Members of Associations who are recognised under the Forward Contracts (Regulations) Act 1956 (42 of 1956)	₹2500 per annum
Remisiers who are recognised by a stock exchange	₹1800 per annum
Organisations which are registered under the Companies Act 1956 (1 of 1956) or Directors (apart from those nominated by the Government)	₹2500 per annum
Proprietors of theatres and cinema houses	₹2500 per annum
Residential hotel employers and licensed foreign liquor vendors	₹2500 per annum
Lessees or owners of diesel or petrol service stations and filling stations	₹2500 per annum
Building contractors or estate agents or brokers	₹2500 per annum
Organisations involved in any trade, calling or profession and registered under the Companies Act, 1956 (1 of 1956)	₹2500
Licensed money lenders under the Assam Money Lenders Act 1934	₹2500
Institutions or individuals conducting Chit Funds	₹2500
Companies engaged in any trade, calling or profession and registered under the Indian Partnership Act 1932 (9 of 1932)	₹2500
Interior decorators, owners of beauty parlours, and dry cleaners	₹2500
Owners of X-Ray clinics, nursing homes, hospitals and pathological testing laboratories	₹2500
Travel agents and film distributors	₹2000
Self-employed individual in a mobile theatre group	Nil

How to Calculate Professional Tax?

Individuals willing to calculate professional tax must first look into the Professional tax in Assam slabs and determine their tax amount considering the salary. Accordingly, individuals can determine the amount of professional tax that will be deductible on a monthly or annual basis.

Alternatively, one can also opt for a professional tax calculator to determine the tax amount applicable for them.

How to Register for Professional Tax?

According to the Assam Ease of Doing Business Act 2016, individuals or employers who are liable to pay Professional Tax for their employees under the Assam Professions, Trades, Callings and Employments Taxation Act 1947 must apply in Form I for online registration of professional tax in Assam. This form is available on the official website of the Government of Assam Commissionerate of Taxes.

They need to submit the form manually to the jurisdictional authority for the purpose of application review. The assessing authority provides the registration in Form IA.

Applicants must provide or produce the documents mentioned below along with their registration form to apply for professional tax -

Wage or salary statement of employees
Photocopy of PAN Card
Photograph
Copy of Current bank account of the company or organisation, or employer
Photocopy of rent agreement

All individuals who are liable to pay taxes under the Professional tax in Assam Act (apart from an individual earning wages or salary in respect of whom the concerned employer pays the taxes) must obtain an enrolment certificate from the assessing authority. For this, they need to apply in Form II available on the official website of the Government of Assam Commissionerate of Taxes. The assessing authority issues the enrolment certificate in Form IIA. Individuals should submit it manually in the office of the concerned authority.

In the Certificate of Enrolment or Registration Certificate, the assessing authority will mention the tax amount that is payable by the holder as per a particular date and schedule.

How to Pay Professional Tax Online in Assam?

Individuals can avail of the online system for professional tax payment in Assam. They need to follow the steps mentioned below to carry out the procedure after visiting the official website of the Government of Assam Commissionerate of Taxes.

Step 1: Navigate to Information & Services > e-services > e-return/e-payment and log in using your user ID and password.
Step 2: After logging in, navigate to e-payment e-GRAS and click on “Make Payment” (e-GRAS)
Step 3: Fill in the form for e-payment with all required details like period of return, mobile number, amount, payment type, etc. and then select “Submit”.
Step 4: Make the online payment for Professional tax in Assam and save or print the payment challan after paying.

Individuals That Need Not Pay Professional Tax in Assam?

According to the provisions of Sec-3 of the Assam Professions, Trade, Callings and Employment Taxation Act 1947, some classes of individuals notified by the State Government of Assam in public interest and members of the Armed Forces of India are exempt from paying the Professional tax in Assam.

Thus, individuals searching for “Professional tax in Assam” must keep in mind the various facts mentioned above. One should ensure to calculate their taxes and be prepared in advance to avoid missing the due date or making hasty mistakes.

Frequently Asked Questions

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Can individuals claim a refund for professional tax?

Yes. Individuals can claim a refund of excess tax deducted or paid during a financial year by filing income tax returns for the concerned year. According to the Income Tax Act, individuals must file the return in the relevant assessment year within 31st July (considering that the deadline for the same is not extended) for claiming a refund from professional tax.

What will happen if an individual does not pay professional tax?

Not paying professional tax can lead to similar consequences as not paying income tax. Here, the concerned individuals can face penal action from the sales tax department. The department can charge interest for late payments that can go up to 2% a month. It can also charge a heavy penalty that can be as high as double the total professional tax.

How can an individual get an Professional tax in Assam certificate?

Individuals can obtain a professional tax certificate through the official web portal of professional tax registration in Assam.