State-wise Professional Tax Payment Deadlines in India: A Comprehensive Guide

[Ishita Ramani]

Introduction 

In India, each state has its own deadlines for professional tax payments. It's crucial for business owners to be aware of these dates to avoid penalties. Professional tax is a direct tax levied by state governments and deducted from taxable income under the Income Tax Act, of 1961. This guide provides an overview of the due dates for professional tax payments in different Indian states. But first, let's understand what professional tax is.

What Is Professional Tax? Despite the name, professional tax isn't just for professionals. It's imposed on income earned from various sources, including employment, trade, and business. The Indian Constitution allows states to levy this tax, but the rate can't exceed ₹2,500 per taxpayer. You can deduct professional tax payments from taxable income under the Income Tax Act of 1961.

Who Pays Professional Tax? Here's who is required to pay professional tax:

• Salaried employees
• Hindu Undivided Families (HUF)
• Firms, companies, cooperative societies, and associations, whether incorporated or not

State-wise Professional Tax Payment Due Dates in India Businesses should be aware of their state's professional tax payment due dates to avoid penalties. Here's a list of key states with their respective deadlines:

1. Maharashtra
   • For those with a tax liability under ₹50,000, the due date is 31st March.
   • If the liability is over ₹50,000 per month, the tax is due at the end of each month.
   • Those registered before 30th May must pay by 30th June; those registered after must pay within one month of registration.
2. Kolkata (West Bengal)
   • Employers with a tax liability of up to ₹3,000 must file quarterly returns within 30 days of each quarter-end.
   • For those with a liability over ₹3,000, monthly payments are due within 21 days of the following month, with quarterly returns.
3. Other States Here’s an overview of other states with their periodicity and payment due dates:
   • Andhra Pradesh: Monthly, 10th of every month
   • Assam: Monthly, 28th of every month
   • Bihar: Annually, 30th November
   • Gujarat: Monthly, 15th of every month
   • Jharkhand: Annually, 31st October
   • Karnataka: Monthly, 20th of every month
   • Kerala: Half-yearly, 31st August & 28th February
   • Madhya Pradesh: Monthly, 10th of every month
   • Manipur: Annually, 30th March
   • Meghalaya: Monthly, 28th of every month
   • Mizoram: Annually, 30th June
   • Pondicherry: Half-yearly, last day of each month
   • Odisha: Half-yearly, 30th June and 31st December
   • Sikkim: Quarterly, 31st July, 31st October, 31st January, and 30th April
   • Tamil Nadu: Half-yearly, 30th September and 31st March
   • Telangana: Monthly, 10th of every month
   • West Bengal: Monthly, 21st of every month

Conclusion Professional tax is levied on various forms of income at the state level, and each state has its own set of payment deadlines. It's essential to pay before these due dates to avoid additional penalties. Professional tax deductions can also affect your Income Tax Return, as they can be subtracted from your taxable income. This guide provides a quick reference to help individuals and businesses stay compliant with their state's professional tax requirements.