Profession Tax Amnesty Scheme Working

Profession Tax Amnesty Scheme Working –

Under the Profession Tax Amnesty Scheme – for Registered persons

In case you have registered yourself and have a Enrollment Number, working would be as under:

1. Basic Tax + Interest (@2% p.m)* + Penalty (Rs.300/year)

* The rate of interest is taken as 2% for ease of computation. Earlier it was 1.25%.

Now take entire Basic Tax Amount + 10% x (Interest + Penalty)

E.g: You have not paid profession tax for the 2005-2006, 2006-2007, 2007-2008.

So calculation would be –

YEAR = BASIC TAX + INTEREST + PENALTY
1. 2005-2006 = 1700 + 1020 + 300
2. 2006-2007 = 2500 + 720 + 300
3. 2007-2008 = 2500 + 150

Interest for 2005-2006 is calculated @ 2 % p.m for 30 months, 2006-2007 for 18 months & so on.

So total payment would be Rs.6700 + 189 + 60 = Rs.6949/-

In case of unregistered person, P.T would be waived upto 2002. Thereafter Basic Tax and Interest working would be the same as registered person. But penalty would be Rs.2/day instead of flat Rs.300 p.a.

In case you need any clarifications, you can mail me/comment.

PS: Do confirm the calculations and check the circular regarding Amnesty scheme before relying on the contents posted here.

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3 comments on “Profession Tax Amnesty Scheme Working

  1. The Penalty is applicable ? Except for the persons not registered or enrolled yet need to pay penalty @ 2 & 5 per day.

    Nowhere other than this penalty is mentioned.

    Please clarify the position at the earliest.

  2. @sunil

    Rs.300 is the “leviable penalty” for non filing. It is 10% of total tax due for the year.

    Refer to S.10 of the Profession Tax Act.

    Though Rs.300 is higher then what actually is required to be paid, the P.T Officers at places like Pune, Ahmednagar, Dhule, Nasik advise practitioners and consultants to pay Rs.300 as penalty to be on safer side.

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