The Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976 — commonly known as the Profession Tax Act — levies tax on professions, trades, callings, and employment. 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 state’s Commercial Tax Department. For salaried employees, the employer deducts the tax from salary, deposits it with the State Government, and files a return with the tax department within the prescribed time, along with proof of payment. Other individual professionals pay their tax directly to the government under the Professional Tax Rules.
The amount of tax payable varies by state, based on slabs set under each state’s own Professions, Trades, Callings, and Employments Act and Rules. Professional tax is levied only in certain states — some states and union territories don’t levy it at all.
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 responsible for deducting tax from employees’ salaries and remitting it to the government.
Registration and Enrolment
Employers:
- Must obtain a Certificate of Registration — apply in Form 1, certificate issued in Form 2 — within 60 days of becoming liable
- A separate registration is required for each jurisdiction where the employer has a work location
Non-Salaried Persons:
- Must obtain a Certificate of Enrolment — apply in Form 3, certificate issued in Form 4 — within 60 days of becoming liable
Returns and Payments
- Monthly Return (Rule 11): Employers 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 in Form 5-AA instead — though tax must still be paid quarterly
- Consolidated Return: Employers with multiple places of business can apply for a consolidated return in Form 5-C (monthly) or Form 5-CC (annual)
Payment of Tax
- Employees: Tax is deducted by the employer each month according to the slab rates in Schedule I, and paid via challan in Form 10 under the specified treasury head
- Enrolled Persons: Payment is due by 30 September each year for those enrolled before 31 August; otherwise, payment is due within one month of enrolment
Maintenance of Records
Employers must maintain a register recording salary paid and tax deducted for each employee.
PT Slab
| Monthly Salary | Tax per Month |
|---|---|
| Up to ₹12,000 | NIL |
| Above ₹12,000 | ₹200 |
References
- Act: Gujarat PT Act
- Rules: Gujarat PT Rules
- Schedule: Gujarat PT Schedule