Professional Tax in Sikkim – A Complete Guide

What is Professional Tax?

Professional Tax (PT) is a state-imposed tax on salaried employees, self-employed professionals, and businesses. It is deducted monthly from salaries and paid to the state government.

Applicability of Professional Tax in Sikkim

Sikkim levies Professional Tax under the Sikkim Tax on Professions, Trades, Callings, and Employments Act, 2006. The tax applies to:

1. Salaried Employees (Government & Private sector)
2. Self-Employed Professionals (Doctors, Lawyers, CAs, Consultants, etc.)
3. Traders & Business Owners
4. Freelancers & Contractors

Who Needs to Register for PT in Sikkim?

1. Employers must register under Professional Tax Registration Certificate (PTRC) and deduct PT from employees’ salaries.
2. Self-Employed Individuals & Businesses must obtain a Professional Tax Enrollment Certificate (PTEC) and pay tax directly.

Due Dates for PT Payment in Sikkim

• For Salaried Employees – Employers must deduct PT monthly and deposit it by the 15th of the following month.
• For Self-Employed Individuals – PT must be paid annually before 30th June.

Consequences of Non-Payment

Failure to register, deduct, or pay Professional Tax in Sikkim can lead to:

• ✅ Late Fee & Interest – 1.25% per month of the due amount.
• ✅ Penalty – Up to ₹1,000 for failure to register and ₹5 per day for delayed payment.
• ✅ Legal Action – The government can initiate recovery proceedings.

Exemptions from Professional Tax in Sikkim

The following individuals are exempted from paying Professional Tax:

• Senior citizens (aged 65 years and above)
• Members of the Armed Forces
• Physically handicapped individuals
• Parents/guardians of mentally disabled children

Conclusion

Professional Tax is mandatory in Sikkim for salaried and self-employed individuals earning above ₹20,000 per month. Employers and professionals must register, pay, and file returns timely to avoid penalties.

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