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Income tax is a term that is very well known to every citizen in the country. The term professional tax is also a direct tax. It applies to the salaried persons or the individuals engaged in trade or business by the state government, which is collected by the local municipal authorities. So, in this article we will look into the provisions of West Bengal professional tax and who is eligible or exempted to pay the same.
Table of Contents
Professional tax is levied by the state government on all the types of individuals, whether salary based or in trade or profession. The professional tax is deducted from the taxable income of an individual.
The power to levy such tax is only with the state government and the process of registration and the rates at which the professional tax is collected varies from state to state. Rs. 2500 is the maximum amount that can be levied as a professional tax annually.
Persons eligible to pay professional tax
The following persons are eligible to pay professional tax in West Bengal:
Exemptions to pay professional tax
Here is a list of persons exempted to pay professional tax in West Bengal:
Professional tax that can generate significant amount of revenue state-wise. It is calculated on the basis of the income of an individual & the salaried person. In case of salaried persons, the professional tax is being deducted by the employer and is submitted to the State Government.
In case of the businesses or self – employed or directors of a company or individual partners or partners of a firm, the professional tax is deducted from the gross turnover of previous year. The professional tax is to be paid at a fixed amount sometimes and sometimes it varies based on the income or salary receiving.
The professional tax collected cannot be more than Rs. 2500 annually. The professional tax can be collected by both salaried individuals and the professionals.
The tax rate slab for:
Salaried individuals
Salary
Professional Tax Amount / Slab Rate
Less than Rs. 10,000
Nil
Between Rs. 10,000 & Rs. 15,000
Rs. 110
Between Rs. 15,001& Rs. 25,000
Rs. 130
Between Rs. 25,001& Rs. 40,000
Rs. 150
More than Rs. 40,001
Rs. 200
Professionals
Income
Less than Rs. 60,000
Between Rs. 60,000 & Rs. 72,000
Rs. 480 per annum
Between Rs. 72,000 & Rs. 84,000
Rs. 540 per annum
Between Rs. 84,000 & Rs. 96,000
Rs. 600 per annum
Between Rs. 96,000 & Rs. 1,80,000
Rs. 1080 per annum
Between Rs. 1,80,000 & Rs. 1,80,000
Rs. 1320 per annum
Between Rs. 1,80,000 & Rs. 3,00,000
Rs. 1560 per annum
Between Rs. 3,00,000 & Rs. 5,00,000
Rs. 2000 per annum
More than Rs. 5 lakhs
Rs. 2500 per annum
The following documents are required for professional tax registration in West Bengal:
These steps are to be followed for employers’ registration in West Bengal professional tax:
These steps are to be followed to pay professional tax in West Bengal online:
The due date for the payment of professional tax in West Bengal is 21st of every month.
The due date for West Bengal professional tax is:
The rate at which the penalty is imposed may vary from state to state.
It is evident from the information provided above, that paying tax means generation of revenue for the State. Thus, it is mandatory to pay taxes to the concerned department.
The procedure for registration and mode of payment for West Bengal professional tax is different from the other states, where professional tax is applicable. Thus, it can be said that registration criteria and payment differ from state to state.
Read our article:All about Gujarat Professional Tax Registration
Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.
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