The Assam Professions, Trade, Callings and Employments Tax 1947

Have you noticed something called professional tax deduction when filing your income tax in Assam? Or perhaps you have noticed it as a deduction on your payslip. As a working professional or an employer in India, you have to pay professional tax in Assam. What is professional tax? It's a tax that you have to pay to the state government on your income from your profession, employment, trade, or any kind of vocation that you carry on. It applies to all kinds of professionals like doctors, accountants, journalists, lawyers, etc. If you are working as a professional in any kind of specialized field, you will have to pay this tax to the state government.

Since it is a state tax, you will need to know about the professional tax requirements of your state. Let's get down to professional tax in Assam. Are you a working professional in Assam? Or are you an employer in Assam? Whether you are an employer or whether you work for a company or whether you carry on an independent profession, you will need to know about the Assam Professions, Trade, Callings and Employments Tax 1947. This is the law that regulates professional tax in Assam. This article will be your complete guide to professional tax in Assam.

It will cover:

What is the Assam Professions, Trade, Callings, and Employments Tax for Professional Tax in Assam?

The Assam Professions, Trade, Callings, and Employments Tax is a tax in Assam that you have to pay on the income you make from your profession or employment. If you are an employee, your employer will deduct the tax from your salary and deposit it with the state government or the concerned local authorities.

In other words, the employer pays this tax on your behalf and deducts it from your salary. If you are an independent professional, you have to pay the tax directly to the government of Assam. If you are an employer, you have to deduct the tax from your employees' wages and file returns.

The amount you pay for this tax in Assam depends on the tax slab that your income falls in for the Assam Professions, Trade, Callings, and Employments Tax.

What Are the Tax Rates and Tax Slabs for Professional Tax in Assam?

The current tax rates for professional tax in Assam are Rs.250 per annum at the lowest slab of income and Rs.2500 per annum at the highest slab of income.

The tax slabs for salaries and wages for the professional tax in Assam are:

Up to Rs.10,000	Nil
More than Rs.10,000 but less than Rs.15,000	Rs.150 per month
Rs.15,000 or more but less than Rs.25,000	Rs.180 per month
Rs.25,000 and more	Rs.208 per month

The tax slabs for professionals, practitioners, and consultants for the Assam Professions, Trade, Callings, and Employments Tax in Assam are:

Up to Rs.1,20,000	Nil
More than Rs.1,20,000 but less than Rs.1,80,000	Rs.1800 per annum
Rs.1,80,000 or more, but less than Rs.3,00,000	Rs.2160 per annum
Rs.3,00,000 or more	Rs.2500 per annum

If you are an independent professional, this set of tax slabs would apply to you.

For this second category of tax slabs, keep in mind that it is based on the annual gross income that you earn.

Such professionals would include:

Legal practitioners
Medical practitioners including medical consultants and dentists
Technical and professional consultants including architects, engineers, chartered accountants, management consultants, and tax consultants
Any other person who is engaged in any profession, trade, calling, or employment but not mentioned in the Schedule attached to the Assam Professions Trade Callings and Employments Tax 1947 Act.

In addition to these two categories, there are other professions mentioned in the Schedule attached to the Assam Professions, Trade, Callings and Employments Tax 1947 Act.

These include:

Estate agents, brokers, or building contractors
Directors of companies
Companies engaged in a trade or profession
Factories
Employers of shops and establishments
Owners of Petrol or diesel filling stations and service stations
Licensed foreign liquor vendors and employers of residential hotels
Proprietors of cinema houses and theatres
Holders of permits for transport vehicles
Licensed money lenders
Individuals or institutions organizing chit funds
Banking companies
Scheduled banks
Other banks
Partnership firms engaged in any profession, trade, or calling
Owners of nursing homes, X-Ray Clinics, pathological testing laboratories, and hospitals
Dry Cleaners, interior decorators, and owners of beauty parlors
Film distributors and travel agents
Self-employed persons in the film industry (directors, actors, editors, photographers, etc.)

For dealers paying tax in Assam (who are considered dealers under sales tax law), the rates are as follows, based on the annual gross turnover of all sales:

Up to Rs. 4,00,000	Nil
More than Rs.4,00,000 and up to Rs.7,00,000	Rs.1,000 per annum
More than Rs.7,00,000/- up to Rs.10,00,000/-	Rs.1,500 per annum
More than Rs.10,00,000/-	Rs.2,500 per annum

Registration and Enrolment for Professional Tax in Assam

To start paying professional tax in Assam you have to get either a certificate of registration or a certificate of enrolment. Keep reading to know which one you need to get.

Registering as an Employer

If you are an employer paying tax in Assam, you have to register under the Assam Professions, Trade, Callings and Employments Tax Act, 1947. This is the first step in your filing process for professional tax in Assam. After registering, you have to start deducting professional tax from your employees and paying it on their behalf to the state.

The registration process is as follows:

1. File an application for a certificate of registration through Form I to the local government authority within whose jurisdiction your place of work falls

2. Once the assessing authority receives your application, he will grant you a certificate of registration in Form IA

Enrolling as a Professional

If you are an employee or a professional paying tax in Assam, you have to file for a certificate of enrolment for the Assam Professions, Trade, Callings, and Employments Tax.

The process for this is as follows:

1. File an application for a certificate of enrolment for professional tax in Assam through Form II to the concerned local government authority

2. When filing form IIA, you will have to give these details:

Name
Address
District
Date of beginning your profession or employment
Period of standing in your profession
Annual Turnover of all sales or purchases

3. The assessing authority will determine the amount of tax that you have to pay according to the schedule attached to the Assam Professions Trade Callings and Employments Tax 1947 Act. The tax slabs and rates for independent professionals are given above

4. The authority will then grant you a certificate of enrolment in Form IIA which will enable you to start paying tax in Assam

Filing Returns for Professional Tax in Assam

As an employer, you need to pay the professional tax you deducted from your employees' salaries or wages to the state government. Along with paying this tax, you also have to file returns on a monthly basis. If you are an independent professional, you will also have to file returns for the Assam Professions, Trade, Callings, and Employments Tax in Assam. You will have to pay the tax amount and then mention it as a deduction in your income tax filings. The process for filing returns for professional tax in Assam is given below.

1. Once you are registered or enrolled for professional tax in Assam, you have to start filing monthly returns in Form III by the last day of every month

2. These returns will show:

The salaries and wages paid by you in the month before and
The amount of tax deducted by you for those salaries and wages paid

3. Before you file the return, you have to pay the full amount of tax due for that return

4. You can also apply to the assessing authority for permission to file quarterly, half-yearly, or annual returns instead of monthly returns

5. When filling out Form III, you will have to give these details:

Your professional tax registration or enrolment number for professional tax in Assam
The names of employees whose monthly salary or wages fall into the listed brackets
These salary/wages brackets start from less than Rs. 1334 and going up to more than Rs. 10,000
The total number of employees
The rate of tax
The amount of tax you deduct from their wages or salaries

Important Compliance Forms for the Assam Professions Trade Callings and Employments Tax in Assam

For professional tax in Assam, the important compliances you have to know are as follows:

Form I - Application for your certificate of registration for professional tax in Assam as an employer or application for amendment of your certificate of registration
Form IA - Certificate of Registration for professional tax in Assam
Form II - Application for a certificate of enrolment for professional tax in Assam as a professional or employee or an amendment of your certificate of enrolment
Form IIA - Certificate of Enrolment for professional tax in Assam
Form IIB - Certificate to be furnished by a person to his employer for professional tax in Assam
Form IIC - Certificate to be furnished by a person who is simultaneously in the employment of more than one employer
Form III - Filing returns for professional tax in Assam
Form IIIA - Application for permission to file returns on a quarterly, half-yearly, or annual basis

Conclusion

Professional tax is a tax that you have to pay as a working professional or employer in most states in India. Each state has its law and rules that lay down the requirements for professional tax. The Assam Professions, Trade, Callings and Employments Tax 1947 is a professional and employment tax you have to pay to the government of Assam.

It applies to a variety of professions and trades. The key to getting it right is to find out which tax slab you fall under and whether you have to apply for registration or enrolment for professional tax in Assam.

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Key Takeaways

The Assam Professions Trade Callings and Employments Tax is a tax in Assam that you have to pay on the income you make from your profession or employment
As an employer, you have to deduct the tax from your employees’ salaries and wages and pay it to the state government towards your employees' dues for professional tax in Assam
You also have to file returns for this professional tax in Assam and get a certificate of registration under the Assam Professions Trade Callings and Employments Tax, 1947
As an independent professional, you have to apply for a certificate of enrolment for the Assam Professions Trade Callings and Employments Tax in Assam, pay the tax and mention it as a deduction in your income tax filing
The current tax rates for the professional tax in Assam are Rs.250 per year at the lowest slab of income and Rs.2500 per year at the highest slab of income
Form I is for application for a certificate of registration, Form II is for application for a certificate of enrolment, and Form III is for filing returns for the Assam Professions Trade Callings and Employments Tax 1947
As an employer, you have to file returns for the Assam Professions Trade Callings and Employments Tax 1947 on a monthly basis but you can also apply to file returns on a quarterly, half-yearly, or annual basis