West Bengal Professional Tax

Professional Tax in West Bengal:

Professional tax is a tax imposed by the state government on income earned from a job, profession, calling, or business. Professional tax is imposed by the individual states’ municipal corporations at preset slab rates. Professional tax might be charged monthly or annually. It can also be claimed as a salary deduction under Section 16 of the Income Tax Act. For professional tax, different states have varied rates and collecting procedures.

West Bengal Professional Tax Slab Rate 2021-22:

S. No	Class of persons / Income	Rate of tax
1)	Employees earning monthly salary or wages— (i) Not exceeding Rs.8,500 (ii) Above Rs.8,500 but not more than Rs. 10,000 (iii) Above Rs. 10,000 but not more than Rs. 15,000 (iv) Above Rs. 15,000 but not more than Rs. 25,000 (v) Above Rs.25,000 but not more than Rs.40,000 (vi) Above Rs.40,000	Nil, Nil* Rs.110 per month Rs. 130 per month Rs. 150 per month Rs. 200 per month
2)	The gross annual income or a portion thereof of any individual employed in any trade or service but not as an employee in the previous year is – (i) Not more than Rs. 60,000 (ii) Above Rs. 60,000 but not more than Rs. 72,000 (iii) Above Rs. 72,000 but not more than Rs. 84,000 (iv) Above Rs. 84,000 but not more than Rs. 96,000 (v) Above Rs. 96,000 but not more than Rs. 1,08,000 (vi) Above Rs. 1,08,000 but not more than Rs. 1,80,000 (vii) Above Rs. 1,80,000 but not more than Rs. 3,00,000 (viii) Above Rs. 3,00,000 but not more than Rs. 5,00,000 (ix) Above Rs. 5,00,000	Nil Rs. 480 per annum Rs. 540 per annum Rs. 600 per annum Rs. 1,080 per annum Rs. 1,320 per annum Rs. 1,560 per annum Rs. 2,000 per annum Rs. 2,500 per annum
3)	The yearly gross turnover or annual gross revenue of any individual involved in any trade or activity that entails the supply of products or services or both in the previous year or a portion thereof is — (i) Not more than Rs. 5,00,000 (ii) Above Rs. 5,00,000 but not more than Rs.7,50,000 (iii) Above Rs. 7,50,000 but not more than Rs.25,00,000 (iv) Above Rs. 25,00,000 but not more than Rs. 50,00,000 (v) Above Rs. 50,00,000	Nil Rs. 300 per annum Rs. 600 per annum Rs. 1,200 per annum Rs. 2,500 per annum
4)	People who work in West Bengal in any profession, industry, or calling.	Rs. 2,500 per annum

Eligibility

In the context of salaried individuals and wage earners, the employer (both formal and informal sectors, as well as the government, which provides salary or earnings to workers) deducts the Profession Tax from the wage or salary and is responsible for depositing it with the state government.

Other kinds of individuals are obligated to pay the tax if they have undertaken in employment, profession, calling, or business.

Exemption from West Bengal Professional Tax

By issuing notices, the State Government can exclude or lower the amount of tax owed to any group of people.

Members of the armed services and the Indian Navy serving in any region of West Bengal are now free from paying professional tax. Any individual receiving salary or allowance as an Army, Air Force, or Navy member is also excluded.

Auxiliary troops or reservists working in any region of West Bengal and receiving salary and allowances as such are exempt from paying Profession Tax.

Salary and Wages

The following items are included in a person’s salary and pay.

• Pay, Dearness Allowance, and any other allowances paid
• Regularly got paid in cash or in any other form.
• In place of remuneration, an honorarium, extra perks, and profit are provided.
• Amount of the encashment of a leave
• Leave with a stipend and a subsistence allowance.

The following items are not included in a salary or compensation.

• Compensation for medical expenses
• Payment of transportation costs and a travel allowance
• Trainees are given a stipend under the Apprentices Act, and trainees are awarded a stipend.
• Bonuses, gratuities, and ex-gratia payments are all statutory.
• An employee’s pension is not regarded as compensation. As a result, a pensioner is exempt from paying Professional Tax on his or her pension.

Enrollment

Anyone who falls under the provisions of entries 2 to 4 of the Act’s “Schedule” must obtain an Enrolment Certificate within ninety days of becoming liable to pay tax. Enrolment is required for everybody who is required to pay taxes. If an enrolled individual stops paying the due tax or pays lesser than the actual amount due, the concerned Deputy Commissioner or Profession Tax Officer will inform and decide the tax owing. If an individual deliberately refuses to apply for enrolment within the necessary time frame, a penalty of Rs.100 shall be applied for every month or part of a month’s delay. Furthermore, short imprisonment with or without a fine is an option for the sentence.

Registration

Any employer who is not a government worker must register for and get a Certificate of Registration in order to deduct the professional tax from his employees’ salaries or wages. The tax should be deducted according to the Schedule’s Serial No. 1 slab. Within Ninety days of the date of liability, such an employer must apply for registration online. If an employer has multiple locations that fall under the jurisdiction of various authorities, each location must submit a different application for registration. The Commissioner of Profession Tax may, nevertheless, approve a single registration for the entire state of West Bengal.

Return Filing

The returns must be filed by all registered employers; however, a registered worker is not expected to submit any returns.

A late fee of Rs 200/- for the first month of default and Rs 100/- for each consecutive month should be charged for late submission of the Return. Non-submission of a return is a crime punishable by simple imprisonment and/or a fine.

Professional Tax Payment

Profession tax could only be submitted through the West Bengal government’s online portal.

• The professional tax must be paid on or before July 31st of each fiscal year by enrolled persons.
• Professional tax must be paid on a monthly basis by registered employers.

West Bengal Professional Tax e-Payment

Step 1: To pay professional tax online, go to the West Bengal profession tax online portal’s official website.

Step 2: The home page opens. Tap the e-Payment tab below the e-Services menu to be redirected to another website.

Step 3: There are four alternatives for making an e-payment.

• Using the No. of Profession Tax Enrolment
• Using a Tax Registration Number for a Profession
• Using a Government Tax ID for a Profession
• For new profession tax enrolment, use Application Number

Check Payment Details

To make the appropriate payment, select an option and press submit.

Penalties

• Deliberate failure to apply for enrolment or registration within the time frame specified.
• Purposefully giving wrong information on a registration or enrolment application.
• Failing to file a return in the time allotted.
• Failing to pay taxes in a timely manner.
• Intentional failure to keep accurate books of accounts.

Prosecution

Certain offences are punishable under West Bengal’s professional tax law. Bail is available for such offences in the form of simple incarceration, a fine, or both. A registered person’s failure to pay tax is one of the offences.

• A registered employer’s failure to file a return.
• Providing false information in a return.
• Failure or reluctance to submit information as required by law.
• Failing to provide and justify records and books of accounts when requested by a governmental body.