Taxation

West Bengal Professional Tax Registration: Here’s all you need to know

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.

What is West Bengal Professional Tax?

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:

• Architects;
• Legal practitioners;
• Medical practitioners;
• Engineers;
• HUF (Hindu Undivided Family);
• Individuals;
• A company, firm, co-operative societies;
• Chartered Accountants;
• Tax & Management Consultants;
• Factory Occupiers; and
• Licensed shopkeepers.

Exemptions to pay professional tax

Here is a list of persons exempted to pay professional tax in West Bengal:

• Persons exempted by the notification issued by the State Government;
• Persons stationed in Armed forces, Navy, or Air Force; and
• If the persons receive any allowance or pay as personnel of auxiliary forces & reservists, they are exempted from paying professional tax.

Why is professional tax collected?

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.

What is tax rate slab for West Bengal professional tax?

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	Professional Tax Amount / Slab Rate
Less than Rs. 60,000	Nil
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

What are the documents required for WB professional tax registration?

The following documents are required for professional tax registration in West Bengal:

• Address proof;
• Details of salary and the employees;
• Account records; and
• Proof of commencement of business.

What is the procedure for an employer to register in West Bengal professional tax?

These steps are to be followed for employers’ registration in West Bengal professional tax:

• Login to the official website.
• Then go to e- services sections and click on registration & select first time application.
• Enter the EC number.
• Then fill in the details asked that includes:
  • PAN details;
  • Name;
  • Address;
  • Contact Number;
  • Email, etc.
• After filling in the details, verify the detail.
• Then enter the designation in the company and click submit.

How to pay West Bengal professional tax?

These steps are to be followed to pay professional tax in West Bengal online:

• Log in to the official website (www.wbprofessiontax.gov.in).
• Click on e – payment option.
• Then fill in all the details that includes EC number, PAN details to complete the process.
• After filling the details, click on proceed and then choose the payment mode.
• Pay the professional tax using debit/ credit card or through net banking.

What is the due date for West Bengal professional tax?

The due date for the payment of professional tax in West Bengal is 21^st of every month.

The due date for West Bengal professional tax is:

• In case the tax liability is less than Rs. 3000, the professional tax can be paid quarterly.

What is the penalty imposed for late payment of professional tax?

The rate at which the penalty is imposed may vary from state to state.

• The penalty imposed on late payment of professional tax is 12%.
• In case of tax liability is up to Rs. 30,000, the penalty is Rs. 200.
• In case of tax liability is more than Rs. 30,000, the penalty is Rs. 300.

Conclusion

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