Professional Tax in Chhattisgarh: Tax Rates, Payment Process & Due Date

The majority of Indian States, including Chhattisgarh, follow the professional tax rules. Unlike the name suggests, the professional tax does not only include professionals but all earning individuals. Here, the income may come from a variety of sources, thus including a wide range of people or categories.  

If you are an earning individual of Chhattisgarh and want to know about professional tax, the following sections will be a great help.

This piece talks about professional tax in Chhattisgarh in detail! So, start reading!

Professional tax is a tax that the State Government of Chhattisgarh levies on individuals who earn through any medium.

The Chhattisgarh Vritti Kar Adhiniyam, 1995 came into effect with the object of levying tax on professions, trades, callings, and employment. This act extends to the entire State of Chhattisgarh.

Follow the table mentioned below to know about the P tax slab in Chhattisgarh.

The Commercial Tax Department is responsible for the collection of P tax in the State of Chhattisgarh.

As per the Chhattisgarh PT Act, every person who runs a trade, either himself or by an agent or representative or who earns from any profession, calling, employment, is liable to pay professional tax as per the income threshold. These professionals must be working either wholly or in part in Chhattisgarh.

Therefore, as per this definition, professional taxpayers can be divided into two sections. These include, 

• Salaried individual
• Self-employed individual

For employees, the employers pay the professional tax on their behalf. The salary or wages of individuals will be deducted from employees by employers in the prescribed manner every month before paying the entire salary to him/her. If employers have paid a salary to employees but have not deducted professional tax, they will be liable to submit the same to the State Government.

On the other hand, self-employed individuals have to pay P tax in Chhattisgarh themselves, i.e. directly to the State Government.

Employers must pay professional tax by treasury challan within ten days before the month (against which the employer has made the deduction) ends. 

On the other hand, individuals other than employers must pay professional tax within the State annually. Remember, individuals registered before the starting of a year or (on or before 31st August of a year) must pay P tax in Chhattisgarh before 30th September of that year. Similarly, individuals registered after 31st August of a year must pay P tax within 30 days of registration.

In case individuals/employers fail to pay professional tax in Chhattisgarh without reasonable cause have to pay 2% of the total due amount (per month) or the highest 2/3 of the total due amount.

Professional tax payment is not necessary for certain individuals. They are as follows,

• Parents whose children have a mental disability or a permanent disability
• Badli workers of the textile industry
• Individuals with a permanent physical disability, including blindness
• Members of the forces as defined in the Army Act, 1950, Air Force Act, 1950, and the Navy Act, 1957
• Members of auxiliary forces who are serving in the State
• Women who work as an agent under the Director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojana

The Chhattisgarh State Government can exempt any person, employer, class of employers under specific circumstances or for public interest from paying P tax within the State. 

With such detailed information, this piece on professional tax in Chhattisgarh comes to an end. Keep in mind the due date and complete P tax payment in Chhattisgarh if you do not want to spend unnecessarily on penalty charges.