Get an expert at affordable price

Professional Taxes are levied by the state government on income earned from employment, profession, calling, or trade. Professional taxation is imposed by the Municipal Corporations of the individual states using predetermined slab rates. Monthly or annual professional tax is payable. Additionally, it may be claimed as a salary deduction under Section 16 of the Income Tax Act. Different states levy and collect professional tax at varying rates and procedures. Professional Tax Slab & Payment in West Bengal.

 

Eligibility

For its residents, West Bengal’s State Legislature enacted the “West Bengal State Tax on Professions, Trades, Callings, and Employments Act, 1979.” The statute establishes two types of persons who are subject to the payment of Profession Tax.

 

In the event of salaried individuals and wage earners, the employer (public and private sectors, government entities that provide pay or earnings to employees) deducts the professional tax from the salary or wages and is responsible for depositing the same with the State Government.

Other kinds of individuals are responsible for paying the tax if they have engaged in employment, profession, calling, or trade.

 

Professional tax exemption in West Bengal

 

By issuing notifications, the State Government may exempt or lower the amount of tax payable by any class of people.

 

At the moment, members of the armed services and the Indian Navy stationed in any region of West Bengal are exempt from professional tax. Additionally, anyone receiving pay or allowance as an Army, Air Force, or Navy member is excluded.

 

Profession Tax is not payable by members of auxiliary forces or reservists serving in any region of West Bengal and receiving pay and allowances as such auxiliary forces or reservists.

Earnings and Compensation

 

Professional tax is payable by everyone who earns a salary or wages. The following section discusses salaries and wages as defined under the West Bengal State Tax on Professions, Trades, Callings, and Employments Act, 1979.

 

The following is a list of salaries and wages.

 

• Salary, Dearness Allowance, and any other allowances paid.
• Regular cash or other types of remuneration received.
• In lieu of a salary, honoraria, perquisites, and profit
• Maintain the amount of encashment
• Concessionary pay and subsistence allowance are no longer available.

 

The following items are excluded from salary and wage.

 

• reimbursement for medical costs
• Reimbursement of transportation costs and reimbursement of travel expenses
• Apprentices get a salary pursuant to the Apprentices Act, whereas trainees receive a stipend. Statutory bonuses, gratuities, and ex-gratia payments are also received.
• Pensions are not considered compensation for employees. As a result, a retiree is not subject to Professional Tax on his or her pension.

Requirements for Payment of Professional Tax in West Bengal

 

The self-employed individual is required to get a Certificate of Enrolment and to make annual tax payments, but is not required to file any returns.

 

Employers are required to get a Certificate of Registration, make monthly tax payments, and file an annual return.

Professional Tax Slab Rate in West Bengal

 

The table contains the ‘Schedule’ of tax rates prescribed by the West Bengal State Tax on Professions, Trades, Callings, and Employments Act, 1979. Professional tax must be paid in accordance with the West Bengal Professional Tax Schedule.

 

Enrollment

 

Every person who falls within entries 2 to 4 of the Act’s “Schedule” should obtain an Enrolment Certificate within 90 days of becoming liable to pay tax. Anyone who is required to pay taxes should apply for enrollment. If an enrolled person fails to pay the required tax or pays less than the real amount due, the concerned Deputy Commissioner / Profession Tax Officer will inform and determine the tax that must be paid. If a person willfully fails to apply for enrolment within the stipulated days, a penalty of Rs.100 will be levied for each month or portion of a month that the application is delayed. Additionally, the abovementioned default is punishable by simple imprisonment with or without a fine.

 

Registration

 

Every employer who is not a government officer should apply for and get a Certificate of Registration in order to deduct profession tax from his employees’ salaries or compensation. Taxes must be deducted in accordance with the slabs specified in Serial No. 1 of the Schedule. Such an employer must register online within 90 days of incurring obligation. Employers having multiple locations within the jurisdiction of different authorities should submit separate registration applications. However, the Commissioner of Profession Tax may grant a single registration for the entire state of West Bengal. Employers who fail to register within 90 days of being liable would face a penalty of Rs 500 for each month or portion of a month’s delay.

Professional Tax West Bengal Slab Rate:

S. No	Class of persons / Income	Rate of tax
1)	Employees earning monthly salary or wages— (i) Not exceeding Rs.8,500 (ii) Above Rs.8,500 but not more than Rs. 10,000 (iii) Above Rs. 10,000 but not more than Rs. 15,000 (iv) Above Rs. 15,000 but not more than Rs. 25,000 (v) Above Rs.25,000 but not more than Rs.40,000 (vi) Above Rs.40,000	Nil, Nil* Rs.110 per month Rs. 130 per month Rs. 150 per month Rs. 200 per month
2)	The gross annual income or a portion thereof of any individual employed in any trade or service but not as an employee in the previous year is – (i) Not more than Rs. 60,000 (ii) Above Rs. 60,000 but not more than Rs. 72,000 (iii) Above Rs. 72,000 but not more than Rs. 84,000 (iv) Above Rs. 84,000 but not more than Rs. 96,000 (v) Above Rs. 96,000 but not more than Rs. 1,08,000 (vi) Above Rs. 1,08,000 but not more than Rs. 1,80,000 (vii) Above Rs. 1,80,000 but not more than Rs. 3,00,000 (viii) Above Rs. 3,00,000 but not more than Rs. 5,00,000 (ix) Above Rs. 5,00,000	Nil Rs. 480 per annum Rs. 540 per annum Rs. 600 per annum Rs. 1,080 per annum Rs. 1,320 per annum Rs. 1,560 per annum Rs. 2,000 per annum Rs. 2,500 per annum
3)	The yearly gross turnover or annual gross revenue of any individual involved in any trade or activity that entails the supply of products or services or both in the previous year or a portion thereof is — (i) Not more than Rs. 5,00,000 (ii) Above Rs. 5,00,000 but not more than Rs.7,50,000 (iii) Above Rs. 7,50,000 but not more than Rs.25,00,000 (iv) Above Rs. 25,00,000 but not more than Rs. 50,00,000 (v) Above Rs. 50,00,000	Nil Rs. 300 per annum Rs. 600 per annum Rs. 1,200 per annum Rs. 2,500 per annum
4)	People who work in West Bengal in any profession, industry, or calling.	Rs. 2,500 per annum

 

Return Submission

 

All registered employers are required to file returns, although an enrolled individual is not compelled to do so.

 

A late filing cost of Rs 200/- for the first month of default and Rs 100/- for each consecutive month must be paid. Non-return is a misdemeanour punishable by simple imprisonment with or without a fine.

Payment of Taxes by Professionals

 

Profession Tax can be paid only through the Government of West Bengal’s online portal.

 

Professional tax should be paid by enrolled individuals on or before July 31st of each fiscal year.

Monthly profession tax should be paid by registered employers.

 

Note: If an employer or an enrolled / non-enrolled individual fails to pay tax on time, he or she will be liable for simple interest at the rate of 1% per month on the unpaid tax.

 

West Bengal e-Payment of Professional Taxes

 

The West Bengal Government’s Directorate of Commercial Taxes facilitates electronic payment of Profession Tax for its people.

 

To make an online payment of professional tax, visit the official website of West Bengal’s online professional tax portal.

 

The home page appears in step two. Click the e-Payment tab under the e-Services menu to be redirected to another website.

 

Step 3: There are four methods for making an electronic payment.

 

• Employing a Profession Tax Identification Number (12-digit numeric)
• Using a Tax Registration Number for a Profession (12-digit numeric)
• Using a Government-issued Profession Tax Identification Number (12-digit numeric)
• Using the Application Number to Enroll in a New Profession (11-digit numeric)

 

Nota bene: If the citizen forgets his or her enrolment or registration number, the VAT No (11-digit numeric) might be utilised.

 

Select one of the payment options and click submit to complete the transaction.

 

Examine Payment Particulars

 

By entering the Government Receipt number (GRN) and clicking submit, you may determine the status of a payment.

 

Penalties

 

The Profession Tax Act imposes penalties in a variety of circumstances.

 

Several examples include the following: –

 

Intentional failure to submit an application for enrollment/registration within the stipulated time period.

 

Intentionally giving false information on the registration/enrollment application.

 

Inability to file return within the time period specified.

 

Failure to pay tax on time.

 

Intentional neglect to maintain accounting books and records.

 

Prosecution

 

Certain offences are punishable under West Bengal’s profession tax law. These are bailable offences punishable by simple imprisonment, a fine, or both. Among the offences are the following:-

 

• An enrolled person’s failure to pay tax.

 

• A registered employer’s failure to submit a return.

 

• Making a return using inaccurate information.

 

• Failure to submit information as required by law due to a refusal or negligence.

 

• Failure to produce and explain documents and books of accounts when ordered to do so by a governmental body. Professional Tax Slab & Payment in West Bengal