Last updated: October 6th, 2022 4:45 PM

Puducherry Professional Tax

Professional tax is a levy imposed by the respective State Government on the income earned by a person or a body by employment, profession, calling, or trade. The State Municipal Corporation collects professional tax through predetermined slab rates. Under Section 16 of the Income Tax Act, the paid tax can be claimed as a deduction from the salary. Different states cover different rates and methods of collection for professional tax. This article looks at the details of Puducherry Professional Tax and its e-payment procedure. The Puducherry Municipalities (Amendment) Act, 2017 governs the levy of a tax on the whole territory of Puducherry.

Applicability of Puducherry Professional Tax

Every person who has engaged in any employment, profession, trades, callings, or transacts business for a minimum of 120 days in a year is liable to pay the levied tax. The responsible persons to pay Profession Tax under the act are divided into two categories.

Employer

The employer (Public and Private Sectors, Government) is liable to deduct the Profession Tax from the salaries or wages of the salaried persons and wage earners and deposit the same with the State Government. The employer, on behalf of all employees, should pay the tax within fifteen days from the end of the quarter. Suppose the employer is an officer of the State Government, the Central Government, the respective Government undertakings, or Public Limited companies. In that case, they should deposit the tax in the specified format.

Employee / Individuals

The person or the employee indulged in any employment, profession, calling, and trade is responsible for paying the tax from the salary or wages. Salary and wages under The Puducherry Municipalities (Amendment) Act, 2017, are described below. Salary and wages include the following.

• Pay, Dearness Allowance, and other amounts paid as allowance.
• Remunerations are received in cash or any other kind on a regular basis.
• 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, the stipend paid to the trainee
• Statutory bonus, gratuity, and ex-gratia payment
• Pension granted to an employee is not considered a salary. Therefore, a pensioner is not liable to pay Professional Tax on a pension.

Requisites for Tax Payment

An Employer requires a Certificate of Registration, monthly payment of tax, and filing of the annual return. The self-employed person requires the Certificate of Enrolment and an annual tax payment receipt but does not require filing any return.

Professional Tax in Puducherry

Half-yearly Income	Half Yearly Tax in Puducherry
Up to Rs.99,999	Nil
Rs.1,00,000 to Rs.2,00,000	250
Rs.2,00,001 to Rs.3,00,000	500
Rs.3,00,001 to Rs.4,00,000	750
Rs.4,00,001 to Rs.5,00,000	1,000
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