Professional Tax in Assam
Update on: 05-April-2025 01:09:47 PM | Published on: 22-March-2025 06:39:47 PM | 8 Minutes Read
Professional Tax Registration is mandatory for all individual involved in any trade or business activity or any profession
Table of Contents
Overview of Professional Tax in Assam
Professional Tax is a tax levied by the state government on individuals earning an income from salary, profession, trade, or business. In Assam, it is governed by the Assam Professions, Trades, Callings, and Employments Taxation Act, 1947.
Types of Professional Tax Certificates:
There are two types of certificates:
1. Professional Tax Enrollment (PTEC):
Professional tax enrollment applies to a wide range of entities, including companies, firms, limited liability partnerships, corporations, societies, Hindu undivided families, associations, clubs, as well as professionals such as legal practitioners, contractors, architects, engineers, tax consultants, management professionals, chartered accountants, lawyers, and medical representatives like doctors and professors.
PTEC Tax Slab Rate In Assam for 2024-2025
Refer to the table below for the updated professional tax rates applicable to above category in Assam.
|
Annual Gross turnover (₹) |
Professional Tax (₹) |
|
₹1 - ₹1,20,000 |
Nil |
|
₹1,20,001 - ₹1,80,000 |
₹ 1,800 p.a. |
|
₹1,80,001 - ₹3,00,000 |
₹ 2,160 p.a. |
|
Above ₹3,00,000 |
₹ 2,500 p.a. |
2. Professional Tax Registration (PTRC):
Applicable for salaried employees, where the employer deducts the professional tax amount from the salary of the employee and deposits the tax to the state government.
PTRC Tax Slab Rate In Assam in 2024-2025
Refer to the table below for the updated professional tax rates applicable to salaried individuals in Assam.
|
Monthly Income (₹) |
Professional Tax (₹) |
|
Up to ₹10,000 |
Nil |
|
₹10,001 - ₹15,000 |
₹ 150 p.m. |
|
₹15,001 - ₹25,000 |
₹ 180 p.m. |
|
Above ₹25,001 |
₹ 208 p.m. |
Procedure for Professional Tax Registration
Application Submission:
- Visit the official website of the Taxation Department, Assam.
- Submit the application form along with required documents.
Verification & Approval:
- The application and documents are verified by the authorities.
- Once approved, a Certificate of Registration (PTRC or PTEC) is issued.
Payment of Professional Tax:
- Employers need to deduct Professional Tax from employees’ salaries and pay it to the government monthly/annually.
- Self-employed individuals need to pay the tax annually as per the prescribed rates.
Documents Required for Ptax Registration
For Employers (PTRC):
- PAN Card and Address Proof of the establishment.
- Trade License / Certificate of Incorporation.
- Details of employees and their salary structure.
- Bank account details.
- Identity & Address Proof of the Employer.
For Self-Employed Individuals (PTEC):
- PAN Card and Address Proof of the individual.
- Proof of Profession (Trade License, Certificate of Practice, etc.).
- Bank account details.
- Identity Proof (Aadhaar, Voter ID, etc.).
Professional Tax Payment Due Date
- PTRC: Monthly payment by the 28th of the following month.
- PTEC: Annual payment by 31st May of each year.
Penalties for Non-Compliance
- Late payment of Professional Tax attracts penalties and interest.
- Non-registration or non-payment may result in legal proceedings and additional fines.
Various Ptax Forms in Assam
The Assam Commercial Tax Department requires various forms for Professional Tax-related processes. The main forms include:
|
Application Form |
Category |
|
Application for Certificate of Registration / Amendment of Certificate of Registration |
|
|
Certificate of Registration |
|
|
Application for a Certificate of Enrolment / Amendment of Certificate of Enrolment |
|
|
Certificate of Enrolment |
|
|
Certificate to be furnished by a person to his employer |
|
|
Certificate to be furnished by a person who is simultaneously in employment of more than one employer |
|
|
Return |
|
|
Application for permission to furnish returns covering quarter, six months or a year |
|
|
Statement of Recovery |
|
|
Information to be furnished |
|
|
Notice to a defaulting enrolled person |
|
|
Notice for showing cause against non-enrolment |
|
|
Assessment Order |
|
|
Notice of Demand |
|
|
Challan |
|
|
Challan |
|
|
Assessment Register |
|
|
Refund Voucher |
|
|
Refund Register |
Frequently Asked Questions
- Why is professional tax deducted?
- Professional tax is deducted as a statutory obligation by state governments to generate revenue for welfare programs and ensure legal compliance.
- Is professional tax compulsory in Assam?
- Yes, professional tax is compulsory in Assam for employers, salaried individuals, and professionals as per the Assam Professions, Trades, Callings, and Employments Taxation Act, 1947.
- Can we skip professional tax?
- No, skipping professional tax is illegal, and non-compliance can result in penalties and legal action.
- Can professional tax be refunded?
- No, professional tax cannot be refunded as it is a statutory tax and not eligible for refunds once paid.
- Is professional tax the same for all employees?
- No, professional tax varies based on the employee's monthly salary slab as determined by the state government.
- Who is exempt from professional tax in Assam?
- Professional tax in Assam is exempted for members of the Indian Navy, Air Force, and Army serving in any part of Assam.
- How to pay professional tax in Assam?
- Professional tax can be paid online through the official website by providing the government ID, registration number, enrolment number, or application number for new enrolment.
- Is professional tax part of CTC?
- Yes, professional tax is part of CTC as it is deducted from the employee’s gross salary by the employer.
- Is professional tax deductible in the new tax regime?
- No, Professional Tax deduction is permitted under Section 16 of the Income Tax Act, but it is only allowed under the Old Tax Regime, not the New Tax Regime.
- Is there any professional tax for partners?
- Yes, partners of a firm are liable to pay professional tax if they are earning income through their profession or business, as per state laws.
