The Assam Tax on Professions, Trades, Callings and Employment Act, 1947 (“Assam PT Act”) is enacted with the object of levying tax on professions, trades, callings, and employments. It extends to the whole state of Assam.
Professional Tax is the tax levied by the State Government on the income from Profession, or Employment and is collected through the Commercial Tax Department of the State. In the cases of employment, the employer shall deduct the tax from the salary and deposit the same to the State Government and the employer shall furnish a return to the tax department in the prescribed form in a specified time frame along with proof of tax payment. The other individual professionals shall pay their respective tax directly to the Government as prescribed under the Professional tax rules.
The amount of professional tax deducted / payable by an employee /professional differs from State to State based on the slabs prescribed by respective States under corresponding Professions, Trades, Callings, And Employments Act & Rules.
The professional tax is levied only in certain States; there are some states and union territories wherein this tax is not levied.
PT Slab
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Salary and wage earners whose monthly salaries or wages in INR per month
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Tax Rate in INR per month
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Up to 10,000
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NIL
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From 10,001 to 14,999
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150
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From 15,000 to 24,999
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180
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From 25,000 and above
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208
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Rates and Tariffs
Registration & Enrolment:
Every person who carries on a trade either by himself or by an agent or representative or who follows a profession or calling or who is in employment, either wholly or in part within the State shall be liable to pay for each financial year, a tax in respect of such profession, trade calling or employment, if otherwise not exempted by a notification from payment of such tax under this Act. The existing rate of tax is Rs.250 per annum at the lowest slab of income while that at the highest slab of income is Rs.2500 per annum.
Extracted from the Assam PT Rules
Certificate of registration and enrolment.- (1) An application for certificate of registration under sub-section (1) of section 5A shall be in Form I. An applicant having places of work within the jurisdiction of different assessing authority shall make an application for registration separately to each such authority in respect of his place of work within the jurisdiction of that authority.
(2) On receipt of an application for registration, the assessing authority shall grant to the applicant a certificate of registration in Form IA if he is satisfied that the application is in order and the necessary particulars have been furnished by the applicant.
(3) If the assessing authority finds that the application is not in order or the particulars necessary for registration have not been furnished he shall direct the applicant to file a revised application or to furnish such additional information as may be necessary. After considering the revised application or the additional information, if any, the assessing authority shall grant a certificate of registration in Form IA.
(4) An application for certificate of enrolment under sub-section (2) of section 5A shall be made in Form II. An applicant having more than one place of work in the State shall be granted only one certificate of enrolment.
(5) Where an applicant has more than one place of work in the State, he shall make a single application in respect of all such places, name in such application one of such places as the principal place of work for the purpose of these rules and submit such application to the assessing authority in whose jurisdiction such principal place of work is situated.
(6) On receipt of an application in Form II, the assessing authority may require the applicant to furnish such additional information or evidence as may be considered necessary for determining the amount of tax payable by him according to the schedule appended to the Act.
(7) After considering the application and such additional information or evidence as may be furnished the assessing authority shall grant a certificate of enrolment in Form IIA.
(8) Where the applicant has more than one place of work in the State, as many copies of the certificate shall be issued to him as there are additional places of work in addition to one copy for the principal place of work.
(9) Where the holder of a certificate of registration granted under this rule desires the certificate to be amended he shall submit an application in Form I for this purpose to the assessing authority setting out the particulars in respect of which he desires such amendment and the reasons therefore together with the certificate of registration and thereupon the assessing authority may if he is satisfied with the reason given make such amendments as he thinks necessary in the certificate of registration.
(10) A certificate of enrolment granted under this rule shall remain valid for so long it is not cancelled under sub-rule (13).
(11) An application for amendment of certificate of enrolment shall be made in Form II to the assessing authority. On receipt of such application the assessing authority may require the applicant to furnish such additional information or evidence as, may be necessary for determining the amount of tax payable by the applicant according to the schedule of the Act, and upon determination of the amount of tax payable by the applicant, the assessing authority shall make necessary amendment in the certificate of enrolment under his dated signature indicating the year from which the tax at the revised rate shall be payable.
(12) The certificate of registration granted under this rule may be cancelled by the assessing authority after he is satisfied himself that the employer to whom such certificate was granted has ceased to be an employer.
(13) The certificate of enrolment granted under this rule may be cancelled by the assessing authority after he is satisfied that the enrolled person is dead or that his liability to pay tax has ceased.
(14) The holder of the certificate of registration shall display the certificate of registration conspicuously at his place of work.
(15) If a certificate of registration or a certificate of enrolment granted under these rules is lost, destroyed or defaced the holder of such certificate shall apply to the assessing authority for a duplicate copy of such certificate and said authority after necessary verification issue to the holder of the certificate a copy of the original certificate and the copy so issued shall bear the endorsement reading "Duplicate Copy".
(16) The certificate to be furnished by a person to his employer under the second proviso to section 5 shall be in Form IIB or IIC as the case may be.
Compliance
Returns - The Commissioner shall every year give a public notice by publication in the news papers directing all person and employers liable to pay tax under the Act to get themselves enrolled or registered, as the case may be, (unless they are already enrolled or registered) and to furnish returns and pay the tax according to the provisions of the Act and these rules.
(1) Every employer registered under the Act shall furnish a monthly return in Form III on or
before the last day of every month showing therein the salaries and wages paid by him in respect of the month immediately preceding that month and the amount of tax deducted by him from the said salaries and wages : Provided that during the financial year commencing on the first day of April, 1992 the monthly returns in respect of the months April, May and June, 1992 shall be furnished on or before the 31st July, 1992.
(2) Before any registered employer furnishes the return required by sub-rule (1) he shall pay into the Government treasury the full amount of tax due according to the return.
(3) Notwithstanding anything contained in sub-rule (1), a registered employer may, upon his applying to the assessing authority in Form IIIA for permission to furnish quarterly, half yearly or annual returns, be permitted to furnish such returns subject to the following conditions :-
(a) the employer shall pay into the treasury within thirty days of the commencement of the period comprising the quarter, half-year or the year, as the case may be, to be covered by the return an amount equivalent to the tax payable at the rates specified in column 3 of the Schedule to the Act on account of salary and wages that he may pay to his employees for the said period;
(b) the return in Form III shall show the salary and wages paid by the employer in respect of the period comprising the quarter, half year, or year, and that they return shall be furnished before the last date of the month following the said period. If the tax payable according to the return is more than the tax paid in advance under clause (a), the employer shall pay the balance due before furnishing the return in the manner laid down in sub- rule (2);
(c) if the amount of tax paid in a advance under clause (a) is greater than the amount payable according to the return, then the employer shall furnish the return showing the amount paid in excess;
(d) that the employer shall deduct the amount of tax from the salary or wages of his employees only when he pays the same to them;
(e) that if the employer commits breach of any of the foregoing conditions, the assessing authority may, after giving the employer a reasonable opportunity of being heard, cancel the permission granted under this rule and the employer shall thereafter furnish the returns in accordance with the provisions of sub-rule (1).