Those taxes which are collected by the government of individual states on the basis of the salary of individuals are referred to as professional taxes. In Gujarat, professional taxes are imposed on employees who earn salaries, individuals earning through their profession as well as self-employed individuals.
Professional taxes are paid in Gujarat by individuals either monthly or quarterly.
Applicability of Professional Tax in Gujarat
An individual who is involved in any business, employment or trade-in Gujarat is required to pay the tax to the authorities according to the defined tax slab rate. The maximum amount of tax an individual has to pay as professional tax is capped at a maximum of ₹ 2,500.
For employees, the professional tax is deducted by the employer from the income. An individual who is running a business in Gujarat has to pay professional tax to the government themselves.
Professional Tax Act in Gujarat
The professional tax in Gujarat is regulated by The Gujarat State Tax on Professions, Trade, Calling and Employment Act 1976 for employees as well as self-employed individuals. The tax is imposed by the Gujarat State Government for the benefit of panchayats, municipal corporations and the whole state. The professional tax is collected by municipal authorities in Gujarat.
Slab Rate of Professional Tax in Gujarat
The tax slab rate varies based on the earnings of an individual. Below is the table showing the tax slab rate for individuals in Gujarat:
| Monthly Salary Range | Payable Tax Amount |
|---|---|
| Salary upto ₹ 12,000 | Nil |
| ₹ 12,000 and above salary | ₹ 200 |
Source: Cleartax
How to pay Professional Tax in Gujarat?
We have understood the slab rate and applicability of Professional Tax. Now the major question arises “How to pay Professional Taxes?”.
A series of steps has to be followed to pay professional tax in the following states in Gujarat:
Steps to be followed while paying professional tax in Surat
- First of all an individual who has to pay professional tax are required to visit the official website of Surat Municipal Corporation
- Then click the option of “E-pay Service”
- Choose the option of “Check and Pay” where you have to verify the details
- The zone has to be selected from the list and the certificate number has to be filled
- Now “Click on Pending Tax Amount” an individual has to pay
- Finally, select the payment option as per your preference and complete the payment. Remember to keep the payment receipt for future reference.
Steps to be followed while paying professional tax in Ahmedabad
- First of all an individual has to visit the official website of the Ahmedabad Government and then move to “Quick Pay Links” and then select “Pay Professional Tax”
- Now you are required to enter the applicant ID and then select the “Search” option
- Finally, you will be redirected to the “Pay” option and you have to choose the desired payment gateway as per your choice and complete the payment. Remember to keep the payment receipt for future reference
Steps to be followed while paying professional tax in Vadodara
- First of all, you are required to visit the official website of the Vadodara Government and then click on the “Online Payment Option”
- Then you have to enter the “PEC Number” and click on the “Search option”. Select the desired payment option
- Now Click on the option to “Confirm” and complete the payment. After this, a receipt will be generated. You have to keep the receipt for future reference.
Late Payment of Professional Tax in Gujarat
According to the Profession Act of Gujarat if an individual fails to make the payment on time an individual is liable to pay a late fee payment along with the annual interest of 18% on the outstanding amount.
Exemption of Professional Tax in Gujarat
Here is the list of individuals who are exempted from paying professional taxes in Gujarat:
- Those individuals who are facing any kind of disability are not required to pay any professional tax but they are required to submit a disability certificate as a proof
- Individuals who are earning up to ₹ 12,000 per month as wages and salaries
- Old citizens aged 65 and above
