Exemption from West Bengal Professional Tax

The State Government may exempt or reduce the payable tax for any class of persons by issuing notifications.

Currently, the members of the forces and the members of the Indian Navy serving in any part of West Bengal are exempted from the payment of professional tax. The exemption also applies to any person drawing a pay or an allowance in Army or Air Force, or Navy.

The members of auxiliary forces or reservists serving in any part of West Bengal and drawing pay and allowances as additional forces or reservists are exempted from payment of Profession Tax.

Salary and Wages

Any person earning a salary or wages is liable to pay professional tax. Salary and wages under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 are described below.

Salary and wages include the following.

• Pay, Dearness Allowance, and any other amount paid as allowance.
• Remunerations are received in cash or any other kind regularly.
• Honorarium, perquisites, and profit instead of salary
• Leave encashment amount
• Leave concessional pay and subsistence allowance.

Salary and wage do not include the following.

• Medical reimbursement
• Reimbursement of conveyance charges, traveling allowance
• Salary paid to apprentice under Apprentices Act, stipend paid to the trainee
• Statutory bonus, gratuity, and ex-gratia payment.
• Pension granted to an employee is not considered a salary. Therefore, pensioners are not liable to pay Professional Tax on their retirement.
  

West Bengal Professional Tax Slab Rate

Enrollment

Every person who comes under entry numbers 2 to 4 of the “Schedule” attached to the Act should acquire an Enrolment Certificate within 90 days from the date of liability to pay tax. A person liable to pay tax should apply for enrolment.

The concerned Deputy Commissioner / Profession Tax Officer will notify and determine the tax to be paid by an enrolled person if they fail to pay the due tax or pay less than the actual amount to be paid. If a person fails to apply for enrolment within the prescribed days, a penalty of Rs.100 will be imposed for delay of each month or part of it. Besides, the provision of punishment with simple imprisonment with or without a fine is available for the said default.

Registration

Every employer (not being a Government officer) should apply and secure a Certificate of Registration to deduct the professional tax from the salary or wages payable to his employees.

The tax must be removed per the slab mentioned in Serial No.1 of the Schedule. Such an employer should apply for registration online within 90 days from the date of liability. An employer with more than one work within the jurisdiction of different authorities should make a separate application for registration.

However, the Commissioner of Profession Tax may allow single registration for the whole of West Bengal. An employer failing to apply for registration within 90 days from the date of liability will be imposed a penalty of Rs 500 for the delay of each month or part of it.

Professional Tax Return Filing

All registered employers are required to submit the returns, wherein an enrolled person is not required to file any returns.

 For late filing of Return, a late fee of Rs 200/- must be paid for the first month of default and Rs 100/- for each subsequent month. Non-submission of Return is a punishable offense with simple imprisonment with or without a fine.

Due Date for Professional Tax Payment

Profession Tax can only be paid through the Government of West Bengal online portal.

• The enrolled persons should pay the professional tax on or before July 31st of each financial year.
• For registered employers, professional tax should be paid monthly.
  

Penalties

The Profession Tax Act provides for the imposition of penalties in different cases.

Some such cases are: –

• Willful failure to apply for enrolment /registration within the prescribed time.
• They are intentionally providing false information in the application for registration/enrolment.
• Failure to file the Return within the prescribed time.
• Failure to pay tax within the prescribed time.
• Willful failure to maintain books of accounts and records.

Prosecution

The West Bengal Profession Tax law provides for prosecution for certain offenses. Such offenses are bailable with simple imprisonment, fine, or both. The violations include:-

• Failure to pay tax by an enrolled person.
• Failure to furnish a return by a registered employer.
• We are furnishing incorrect information in Return.
• Refusal or negligence to provide information as required under the law.
• Failure to produce and explain records and books of accounts for inspection as required by an authority under the law.