Professional Tax
Act 1975
The Professional Tax Act (commonly referring to state-specific legislation like the
Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975)
mandates that state governments levy taxes on income earned from professions, trades, or employment. It applies to employees, self-employed individuals, and professionals, with a maximum annual limit of ₹2,500 per person, as per Article 276 of the Indian Constitution.
Reva helps in :-
a) Registration & Setup
- Obtain Professional Tax Registration Certificate (PTRC) for employers.
- Obtain Professional Tax Enrollment Certificate (PTEC) for self-employed professionals.
- Register on the specific State Government's PT portal.
b) Monthly Compliance (Payroll Cycle)
- Deduct PT from employee salaries based on state-specific salary slabs.
- Ensure the deduction is reflected on the payslip.
- Remit the deducted tax to the state government within the stipulated deadline (varies by state).
c) Return Filing & Reporting
- File periodic returns (monthly, quarterly, or annually) detailing employee data and tax amounts.
- Ensure the return matches with the payment challans.
- Generate and save the acknowledgment of the filed return.
d) Documentation & Record Keeping
- Maintain updated records of gross salary and PT deductions for each employee.
- Preserve PTRC/PTEC certificates, payment challans with Government Reference Numbers (GRN), and return copies for a minimum of 5 years.
- Document any employee exemptions (e.g., senior citizens, disabled persons).
e) State-Specific Adherence
- Monitor state-specific, up-to-date rules on tax rates, thresholds, and due dates, as PT is not uniform across India.
- Consequences of Non-Compliance
- Failure to comply, such as delayed filing or non-payment, can result in interest, penalties, and potential legal action.
