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!

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.

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.

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

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.

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.

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.

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.