Persons exempt from Payment of Profession Tax

Exemption from payment of Profession Tax –

Following classes of persons are exempted from payment of Profession Tax –

  1. Members of the forces as defined in the Army Act, 1950 or the Air Force Act, 1950 and the Navy Act, 1957 including members of auxillary forces or reservists, serving in the state.
  2. The badli workers in the textile industry.
  3. Any person suffering from a permanent physical disability (including blindness)
  4. Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojna or Director of Small Savings.
  5. Parents or guardian of any person who is suffering from mental retardation
  6. Persons who have completed the age of 65 years (w.e.f. 1.4.1995)
  7. Parents or guardians of a child suffering from a physical disability as specified in clause (C) w.e.f 1.10.1996


So, in case you are above 65 years of age, contact your Profession Tax office alongwith an application stating that you are above 65 years of age & carry a proof of your age- ex: Pan Card or Voter’s ID card.

In the store- It is heard that 01/04/2008 onwards, Profession tax office will be handling Service tax as well!

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Profession Tax Amnesty Scheme Working

Profession Tax Amnesty Scheme Working –
Valid from 01.09.2007 to 31.10.2007

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

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.4200 + 174 + 60 = Rs.4434/-

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 (comes to Rs.730 per year) instead of flat Rs.300 p.a.

The working has to be submitted in Annexure 1 to the Profession Tax Department along with self attested photocopy of the challan through which payment has been made in the bank.

In case you need any clarifications/Excel PT Amnesty Working Sheet (free of charge), you can mail me/comment.

You can also get Excel Utility from Mera Consultant for Rs.300/-

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

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.

Profession Tax Amnesty Scheme Working

Profession Tax Amnesty Scheme Working –
Valid from 01.09.2007 to 31.10.2007

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

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.4200 + 174 + 60 = Rs.4434/-

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 (comes to Rs.730 per year) instead of flat Rs.300 p.a.

The working has to be submitted in Annexure 1 to the Profession Tax Department along with self attested photocopy of the challan through which payment has been made in the bank.

In case you need any clarifications/Excel PT Amnesty Working Sheet (free of charge), you can mail me/comment.

You can also get Excel Utility from Mera Consultant for Rs.300/-

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