Professional Tax Registration in Gujarat

Overview
Revised Professional Tax
Documents Required
How to Register
Who Gets Exemption
Due Date
Professional Tax Rate
Why Vakilsearch?
FAQs

Overview

Professional tax is a tax levied on individuals who earn income from employment, trade, or profession in a state. It is a state tax, and the rates and rules vary from state to state. In Gujarat, professional tax is levied under the Gujarat Professional Tax Act, 1976. Any individual who earns income from employment, trade, or profession in Gujarat is liable to pay professional tax if their gross monthly salary or income is more than ₹12,000. This includes salaried employees, self-employed professionals, and business owners.

Revised Professional Tax in Gujarat

The Gujarat government revised the professional tax rates and slabs in 2019. The new rates came into effect from 1 April 2019.

Documents Required for Professional Tax Registration in Gujarat

The following documents are required for professional tax registration in Gujarat:

Form 1 (Application for Registration)
Copy of Aadhaar card
Copy of PAN card
Copy of address proof
Copy of salary slip (for salaried employees)
Copy of business registration certificate (for self-employed persons)

How to Register for Professional Tax in Gujarat?

To register for professional tax in Gujarat, you can follow these steps:

1. Download Form 1 from the website of the Commercial Tax Department, Gujarat.

2. Fill in the form and attach the required documents.

3. Submit the form and documents to the nearest Commercial Tax Office.

4. On successful verification of the documents, you will be issued a professional tax certificate.

Who Gets Exemption From Professional Tax in Gujarat

The following individuals are exempt from paying professional tax in Gujarat:

Persons with gross monthly salary or income up to ₹12,000
Persons with disabilities
Women pensioners
Students
Persons above the age of 65 years
Persons engaged in agriculture or horticulture

The Due Date for Filing Professional Tax in Gujarat

The due date for filing professional tax in Gujarat is the 15th day of the month following the quarter in which the tax is payable. For example, the due date for filing professional tax for the quarter April-June is 15 July.

Why Vakilsearch?

Vakilsearch is a leading provider of professional tax services in Gujarat. We have a team of experts who are dedicated to helping you simplify the professional tax registration process and ensure compliance with all applicable laws.

We offer a wide range of services, including:

Professional tax registration assistance
Compliance support
Tax planning advice
Representation in case of disputes

We are committed to providing you with the best possible service and helping you meet your tax obligations seamlessly.

FAQs on Professional Tax in Gujarat

Who is eligible to be a Professional in Gujarat?

Under the Gujarat Professional Tax Act, 1976, any individual who earns income from employment, trade, or profession in Gujarat is eligible to be a professional. This includes salaried employees, self-employed professionals, and business owners.

Who is liable to professional tax in Gujarat?

Any individual who earns income from employment, trade, or profession in Gujarat is liable to pay professional tax, if their gross monthly salary or income is more than ₹12,000. This includes salaried employees, self-employed individuals, and business owners.

Is professional tax registration mandatory in Gujarat?

Yes, professional tax registration is mandatory in Gujarat for all individuals who are liable to pay professional tax.

How is the professional tax rate in Gujarat calculated?

he professional tax rate in Gujarat is typically calculated based on a slab system, where the tax amount depends on the income level of the individual. The rates may vary from year to year, and higher-income individuals usually pay a higher tax. Employers are responsible for deducting the tax from the salaries of their employees based on the applicable slab rates.

Is professional tax different in a different state?

Yes, professional tax is a state tax, and the rates and rules vary from state to state. Some states do not have professional tax at all, while others have different slabs and rates. It is important to check the professional tax rules in your state to determine if you are liable to pay the tax and what the rate is.

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