Professional Tax in Gujarat: Everything Explained

Source: vakilsearch.com

Every salaried individual in Gujarat is well aware of the term ‘professional tax’. However, the term does not include only concerned about salaried persons but includes all earning individuals. Hence, all earning individuals must have complete knowledge about professional tax in Gujarat.

Read the following sections to know the definition of professional tax, payment process and everything related to it!

The State Government of Gujarat levies a professional tax on employees and individuals involved in a different profession and earns livelihood through trades, calling or employment.

The Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976, came into effect with the aim to impose a tax on professions, employments, trades, and callings.

Read the following table to learn about the current professional tax slab in Gujarat.

Different municipal corporations in Gujarat are collecting professional tax.

• Salaried Individual: Salaried individuals are liable to pay PT in Gujarat. Here, the employer deducts professional tax from the employee’s salary or taxable income and pays it to the State Government of Gujarat.
• Self-employed Individual: A self-employed individual must pay professional tax on their own to the State Government of Gujarat.

Individuals can pay professional tax online at the respective websites of Ahmedabad Municipal Corporation, Surat Municipal Corporation Vadodara Municipal Corporation.

Pay Online Professional Tax at Ahmedabad Municipal Corporation

• Step 1 - Log in to the official website of Ahmedabad Municipal Corporation.
• Step 2 - From the ‘Quick Pay Links’ box, select ‘Pay Professional Tax’. 
• Step 3 - Next, enter ‘Profession tax no’ and click on ‘Search’.
• Step 4 - Select the ‘Pay’ option and choose a payment gateway as per your preference.

Pay Online Professional Tax at Surat Municipal Corporation

• Step 1 - Visit the official website of Surat Municipal Corporation and navigate to the page of ePay Service. 
• Step 2 - Click on the ‘Check & Pay Professional Tax’ option from the ‘Professional Tax’ column. 
• Step 3 - Select the zone from the available options and provide the certificate number. Next, click on ‘Enter Pending Tax Amount’ once you have successfully entered the Captcha code. 
• Step 4 - Select the online payment option and complete the process through a preferable payment gateway.

Pay Online Professional Tax at Vadodara Municipal Corporation

• Step 1 - Log on to the official website of Vadodara Municipal Corporation and click on the ‘Online Payment’ option. 
• Step 2 - Next, enter the PEC number and click on the ‘Search’ option.
• Step 3 - Click on ‘Check Box’ and select payment method.
• Step 4 - Click on the ‘Confirm’ button and complete the online payment. After a successful payment, the transaction status will appear on the screen. Click on ‘Print receipt’ to get a copy of the same.

The professional tax payment/collection process occurs both on a monthly and quarterly basis. If a company has less than 20 employees/staff, the employer or the business owners have to pay the amount within 15 of the following month.

Alternatively, suppose a company has more than 20 employees/staff. In that case, the employer or the business owner can pay the PT in Gujarat quarterly, i.e. before the 15th of the next month to the end of every quarter. Remember, here respective employer or the business owner must complete payment within 15 days after the end of the previous quarter.

Therefore, the due dates of quarterly professional tax payment in Gujarat are as follows,

• 15th July (for April to June quarter)
• 15th October (for July to September quarter)
• 15th January (for October to December quarter)
• 15th April (for January to March quarter)

If individuals fail to pay professional tax, they have to pay a late payment charge with a yearly interest of 18% of the total due amount, which is calculated on a daily basis.

Handicapped persons need not pay PT in Gujarat. However, they need to submit a disability certificate for securing such exemptions.

Now that individuals know important information about professional tax in Gujarat, they can be the same at different municipal corporations without any hassle.