Each state has its own tax slab. In some states and union territories like Delhi, Haryana, Daman & Diu, Jammu Kashmir, Andaman, Arunachal Pradesh, Nagaland, Lakshadweep, professional taxes are not applicable. According to the latest updates, in Gujarat people who earn up to ₹ 12000 are exempted from paying the professional taxes. This came into effect from April 1, 2024.
In India, everyone who earns more than a specific amount needs to pay the tax known as professional tax. This is imposed on all who earn a living through a profession, trade, or by any other profession. The amount of the professional tax that must be paid to the state government depends on the individual’s income in accordance with the state’s income tax slab rates. Professional tax slab Gujarat for the current year will be discussed in the article.
There has long been a practice of professional taxes. A professional tax may only be assessed up to a maximum of ₹ 2,500 annually. Under the 1961 Income Tax Act, the entire amount of tax paid for the year may be deducted. In Gujarat, the employer must submit an application for a registration certificate to the commercial tax department within 30 days after hiring employees for their company.
Salary Income Tax Slab
| No | Class of Persons | Rate of Tax per month |
| 1 | A) Salary & wages earners of the state government, Central Government, Panchayats, Public Sector Undertakings of the State & Central Government and Grant-In-Aids institutions whose monthly salaries or wages are |
|
| i) Up to Rs 12,000/- | Zero | |
| ii) More than 12,000/- | Rs. 200/- | |
|
B) Salary & wages earners other than those mentioned in sub-entry (A) above, whose institutions whose monthly salaries or wages are
|
||
| i) Up to Rs 12,000/- | Zero | |
| ii) More than 12,000/- | Rs. 200/- |
Important Dates of Paying Professional Tax Slab Gujarat 2023-24
Here are a few important dates to keep in mind if you are an individual paying commercial tax Gujarat:
Both monthly and quarterly payments and collections are made for professional taxes. The employer or the business owners must pay the amount within 15 days of the next month if a company has fewer than 20 employees. Income tax last date Or, let us say a business employs more than 20 people. If so, the employer or business owner may pay the PT in Gujarat on a quarterly basis, i.e., before the 15th of the month after the end of the quarter. Keep in mind that the employer or business owner in each case must make the payment within 15 days after the end of the preceding quarter.
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Documents Required to Register Tax Slab 2023-24
There are a few mandatory documents one must produce to register for professional tax:
- Office tax bill
- Owner ID proof
- Rental Agreement
- Two Passport size photo of owner
- LWF paid receipt
- Owner Tax bill & receipt
- Memorandum Of Association, Articles Of Association and Incorporation Certificate
- Company PAN card copy
- Cancelled Letterhead
- Authorisation letter
- All documents with stamp and sign by Owner / Manager
Documents Required by a Company To Register Tax Slab 2023-24
Here are a few documents required by a company to register for professional taxes:
- Copy of Articles and Memorandum of Association
- Copy of Certificate of Incorporation
- Two Address Proofs of director (Copy of Electricity bill and Passport/Driving License/Voter ID/Ration Card)
- Copy of Notarised Rental Agreement in English, in case of rented property, along with NoC from property owner and maintenance bill
- Copy of Sale Deed/Property Deed in English (in case of owned property)
- Passport size photograph of applicant (Please do not paste the photo on the printout of application.)
- Copy of PAN card of company and all directors
- Cancelled company cheque
Details on Return Filing in Gujarat
Given below are the details on the tasks and last date of filing taxes. The official forms for reference are also given below:
| Task | Last Date Of Filing Returns | Form |
| Annual Returns | Every year(s) on day 20 of December |
FORM No. 5A.xlsx FORM No. 5AA.xlsx FORM No. 5C.xlsx |
| Monthly Returns | Every month on day 15 | FORM No. 5.xlsx |
Registration And Tax Payment Procedure
The payment must be made within 15 days after the end of the month if the employer or business owner has more than 20 employees. If the firm has fewer than 20 employees, they may pay them quarterly. If they fall under the domain of the state government as designated authority, employees may pay in treasury via challan through the bank. Municipalities in the state are responsible for collecting taxes.
As a result, the district Panchayat or municipal corporation also handles registration. A company must register with each municipal corporation or Panchayat if it employs people in more than one municipality. Additionally, it must pay taxes to each municipal corporation separately. It can, however, submit a consolidated return of the municipalities. Although the registration form can be downloaded online, one must visit the municipal corporation to submit the form.
Exemptions of Professional Taxes in Gujarat
In Gujarat, disabled people are exempt from paying PT. However, in order to obtain such exemptions, people must present a disability certificate.
Individuals can now be the same at various municipal corporations without any hassles because they are aware of crucial information regarding commerical Gujarat Professional Tax Slab through Vakilsearch. For any further queries, one can contact the legal expertise of Vakilsearch.
Frequently Asked Questions
Is professional tax mandatory in Gujarat?
According to the law, if you meet the criteria for professional tax in Gujarat, it is obligatory to remit the tax to the government at the prescribed rate. Timely payment is advisable to avoid penalties.
What is the professional tax amount in Gujarat?
The maximum annual professional tax liability is Rs 2500. On a monthly basis, individuals with a gross salary falling between Rs 13,500 are required to pay Rs 200.
Who is required to pay professional tax in Gujarat?
Professional tax in Gujarat is applicable to individuals, Hindu undivided families, and all types of associations, companies, and businesses.
Who is exempt from professional tax in Gujarat?
As per the updated professional tax rates set by the Gujarat government, individuals earning up to Rs 12,000 are exempt from paying professional tax. This exemption also applies to disabled individuals and senior citizens.
How can professional tax be paid in Gujarat?
If you are a salaried employee, your employer will deduct the tax from your salary. Alternatively, if you are self-employed, you can make the payment directly to the respective municipal corporation through online channels.
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