The Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976
The Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976 (commonly known as the Profession Tax Act) came into force to levy tax on professions, trades, callings, and employments. It extends to the whole state of Gujarat.
Professional tax is levied by the State Government on income from a profession or employment, and is collected through the Commercial Tax Department of the state. In cases of employment, the employer deducts the tax from the employee's salary and deposits it with the State Government, and must furnish a return to the tax department, in the prescribed form and within a specified time frame, along with proof of payment. Other individual professionals pay their tax directly to the government, as prescribed under the Professional Tax Rules.
The amount of professional tax deducted or payable by an employee or professional varies from state to state, based on the slabs prescribed by each state under its corresponding Professions, Trades, Callings, and Employments Act and Rules. Professional tax is levied only in certain states; some states and union territories don't levy this tax at all.
PT Slab
| Monthly Salary | PT per Month |
|---|---|
| Up to ₹12,000 | NIL |
| Above ₹12,000 | ₹200 |
Last updated on: 04 June 2025
Applicability and Scope
- Every person engaged in any profession, trade, calling, or employment in Gujarat is liable, including individuals, HUFs, firms, companies, associations, and societies.
- Employers are liable to deduct tax from employees' salaries and remit it.
Registration and Enrolment
Employers
- Must obtain a Certificate of Registration (Form 1 → Certificate in Form 2) within 60 days of becoming liable.
- A separate registration is required for each jurisdiction if the employer has work locations in different areas.
Persons (Non-Salaried)
- Must obtain a Certificate of Enrolment (Form 3 → Certificate in Form 4) within 60 days of becoming liable.
Returns and Payments
Monthly Return (Rule 11)
- Employers must file Form 5 within 15 days of the following month.
Annual Return (Rule 11A)
- Employers with 20 or fewer employees may file an annual return (Form 5-AA).
- Tax must still be paid quarterly, even for annual return filers.
Consolidated Return
- Permitted on application, in Form 5-C (monthly) or Form 5-CC (annual), for employers with multiple places of business.
Payment of Tax
Employees
- Deducted by the employer monthly as per the slab rates (Schedule I).
- Paid via challan in Form 10 under the specified treasury head.
Enrolled Persons
- Must pay by 30 September every year (if enrolled before 31 August), or within one month of enrolment otherwise.
Maintenance of Records
Employers must maintain a register showing the salary paid and tax deducted for each employee.