Professional Tax in Assam – Rates & Filing Guide

Professional Tax (PT) in Assam is governed by the Assam Professions, Trades, Callings, and Employments Taxation Act, 1947. This tax is applicable to both salaried employees and self-employed individuals, including business owners.

Professional Tax Rates for Self-Employed Individuals and Business Owners in Assam:

The PT rates for self-employed professionals and business owners vary based on their annual income or the nature of their profession. Below is a detailed breakdown:

1. Self-Employed Individuals (Professionals and Traders):

• Annual Income up to ₹1,20,000: No PT payable.
• Annual Income between ₹1,20,001 and ₹1,80,000: ₹1,800 per annum.
• Annual Income between ₹1,80,001 and ₹3,00,000: ₹2,160 per annum.
• Annual Income above ₹3,00,000: ₹2,500 per annum.

2. Dealers Including Industry or Mill Owners:

• Annual Gross Turnover up to ₹4,00,000: No PT payable.
• Annual Gross Turnover between ₹4,00,001 and ₹7,00,000: ₹1,000 per annum.
• Annual Gross Turnover between ₹7,00,001 and ₹10,00,000: ₹1,500 per annum.
• Annual Gross Turnover above ₹10,00,000: ₹2,500 per annum.

3. Factory Occupiers (Not Classified as Dealers):

• Employing up to 5 workers: ₹350 per annum.
• Employing between 6 to 15 workers: ₹2,000 per annum.
• Employing more than 15 workers: ₹2,500 per annum.

4. Establishment and Shop Employers (Under the Assam Shops and Establishment Act, 1971):

• No employees: No PT payable.
• Employing up to 5 individuals: ₹300 per annum.
• Employing between 6 to 10 individuals: ₹1,500 per annum.
• Employing more than 10 individuals: ₹2,500 per annum.

5. Self-Employed Individuals in the Motion Picture Industry:

• Directors, Actors, Actresses (excluding junior artists), Playback Singers, Cameramen, Recordists, Editors, Still Photographers: ₹2,000 per annum.
• Junior Artists, Production Managers, Assistant Directors, Assistant Cameraman, Assistant Recordists, Assistant Editors, Musicians, Dancers: ₹700 per annum.

6. Other Specific Professions:

• Owners of Nursing Homes, X-Ray Clinics, Pathological Testing Laboratories, Hospitals: ₹2,500 per annum.
• Dry Cleaners, Interior Decorators, Owners of Beauty Parlours: ₹2,500 per annum.
• Film Distributors, Travel Agents: ₹2,000 per annum.

Note: The maximum PT payable per annum in Assam is capped at ₹2,500.

Registration and Payment Process:

• Registration: Self-employed individuals and business owners must register for PT by submitting Form I through the official portal of the Assam Government’s Commissionerate of Taxes.
• Payment: PT can be paid online via the e-GRAS portal. After logging in, navigate to the payment section, fill in the required details, and complete the payment. Ensure to save the payment receipt for future reference.

Due Dates:

• Monthly Returns: Due by the last day of the following month.
• Annual Returns: Due on or before April 30th of the subsequent financial year.

Penalties for Non-Compliance:

• Late Payment: Interest at the rate of 1.25% per month on the outstanding amount.
• Late Filing of Returns: Penalties up to ₹1,000 per return, along with applicable interest.
• Failure to Register: May result in fines and interest charges.

Exemptions:

Certain individuals are exempt from paying PT in Assam:

• Individuals with Disabilities: Those with at least 40% disability.
• Senior Citizens: Individuals above 65 years of age.
• Specific Sectors: Individuals employed in agriculture, handloom, cottage industries, fishing, weaving, pottery, sculpting, and those engaged in the sale of vegetables, fruits, and fish.
• Armed Forces Personnel: Members of the armed and paramilitary forces.

Conclusion:

Adherence to Professional Tax regulations is crucial for self-employed individuals and business owners in Assam to avoid penalties. Timely registration, accurate calculation based on the applicable slab rates, and punctual payment are essential for compliance.

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