Like most states in India, the Government of Maharashtra also levied state professions tax in 2018 on earning individuals.
Professionals working in public or private sectors such as doctors, lawyers, chartered accountants, and others are all responsible for paying PT and get a Certificate of Enrolment from the professional tax authority of the Government of Maharashtra.
Who Is Exempted from the Tax?
Exemptions from deduction and payment of professional tax are allowed in case of certain types of employees:
- A person suffering from a permanent physical disability.
- Parents of a mentally challenged child.
- Parents of a child suffering from a physical disability.
- Persons who are above 65 years of age.
About the Recent Exemptions from Late Fees
As per section 6(1) of the Profession Tax Act, every employer who has received the Profession Tax Registration Certificate has to provide a return by stating the salaries and wages paid and the amount of tax deducted by the organization.
Why Was the Exemption in Late Fee for Profession Tax Necessary?
The Trade Associations and employers in unison apprised that due to technical difficulties, many employers were not able to upload their returns.
Also, technical difficulties in creating a profile for accessing e-services on mahagst.gov.in have been put forth by them.
Therefore, a circular and a notification were released for the exemption of late fees for Maharashtra state professions tax payment where employers were not able to upload the returns while filing returns up to June 2018.
Dispensation of payment of late fee of the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.
- As per Rule 11(2A), such returns will be issued in electronic Form IIIB and the payment shall be made before uploading the returns on the official website of Mahagst.gov.in. It is also a rule that a return without the proof of payment will not be deemed to have been duly filed.
- Under the provision of Section 6(3) of the Profession Tax Act, 1975, the late fees payable by the registered employer, during the period April 2016 to June 2018 is being exempted and subjected to the fulfilment of eligibility conditions. Any amount payable as per return should have been or shall be paid on or before the due date and the mentioned employers should submit the monthly or annual returns of the duration from April 2016 to June 2018 on or before the 31st of July, 2018.
- No refund or adjustment against any tax liability will be allowed where the late fee has already been paid.
- If it is found that the employer has not fulfilled the conditions or has submitted false information to avail the benefits of exemption then their right to exemption from late fees will be revoked and action will be taken against them as per the provisions of law.
The taxpayers may access the file “FAQs for Profession Tax” for necessary guidelines regarding issues in profile creation, registration, payment, return filing. The professional tax is charged by the State Government and the Income Tax is charged by the Central Government. This remains a major difference between the two of them.