Maharashtra Professional Tax Rates After All Amendments The concept of profession tax is not new to the people.

We know that profession tax is a tax which is implemented on Professions, Callings, Traders and Employments on the state level. The returns should be filed timely and the due date for remittance of such varies with income. The return of professional tax for should be filed according to directions of state law and order. The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 governs the law in regard to professional tax in Maharashtra and it is applicable on individuals and organizations. Organization in such context would include a firm, a company, a proprietary concern, A HUF, a Society, a club, Association of Persons and any other body as may be prescribed by the Act. The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, which states that where: Professional Tax Rates in Maharashtra i) Annual liability for professional tax is less than Rs. 5, 000, return should be filed annually: ii) Annual liability for professional tax is greater than Rs. 5, 000 but less than Rs. 20, 000, return should be filed Quarterly; iii) Annual liability for professional tax is greater than Rs. 20, 000; return should be filed on monthly basis. Added to it, returns must be filed within the last day of such respective month to which it is related and should also contain basic information in relation to the details regarding salaries paid and tax deducted in such respect. Due date for people having Enrolment certificate is 30th June, whereas any delay in filing of such returns shall attract an interest @ 1.25% per month. Along with it, all Enrolment certificate holders are requested to receive bank payment challans by mid June. Non-payment of profession tax calls in for payment of penalties to an individual. The harshness of the penalty varies with the intent of an individual to evade from profession tax. Where an individual provides fake information with regard to his enrolment, penalty can be thrice the tax amount. Where an individual delays in attaining the Enrolment certificate, he shall be liable to pay a penalty of Rs. 2 per day until such delay is discontinued. Where an individual does not pay any professional tax, he shall be liable to pay a penalty which is equivalent to 10 times of the tax amount. Liability on Individuals: Individuals who are residing in Maharashtra are required to acquire a Certificate of Enrolment if they are engaged in any Profession, calling, trade or employment. The Certificate is issued by the Tax Authority. The Certificate is valid for five years which gives the benefit of a lump sum payment (which will be equivalent to his professional tax) by the individual for four years in respect of this professional tax. The fifth year is exempted on such payment. Senior citizens and handicapped persons (disability greater than 40 %) are exempted from payment of such tax. Liability on Organizations:

Organizations are required to get a Registration Certificate from the tax authority and thereby get registered with them. The payment of professional tax will be facilitated by such action. If there is a firm, separate Enrolment certificate needs to be obtained as its a separate legal entity. Levy of Profession tax : 1) There shall be levied by the Municipal Council a tax on profession, trade calling and employment. 2) Every company which transacts business and every person, who is engaged actively or otherwise in any profession, trade, calling or employment with in the Town Panchayat on the first day of the half-year for which return is filed, shall pay half-yearly tax at the rates specified in the Table below in such manner as may be prescribed: THE TABLE Sl. No. 1 2 3 4 5 6 Six months income (Rs.) upto 21,000 21,001 30,000 30,001 45,000 45,001 60,000 60,001 75,000 75,001 and above Old Tax (Rs) 75 188 390 585 810 New Tax (Rs) 100 235 510 760 1095

Profession Tax Collectable from the salary of August (Ist Quarter ) and January (IInd Quarter) 3) The rate of tax payable under sub-section (2) shall be published by the executive authority in such manner as may be prescribed. 4) Where a company or person proves that it or he has paid the sum due to account of the tax levied under this chapter or any tax of the nature of a profession tax imposed under the Cantonments Act, 1924 for the same half-year to any local authority or cantonment authority in the State of Tamil Nadu such company or person shall not be liable by reason merely of change of place of business, exercise of profession, trade, calling or employment or residence, to pay the tax to any other local authority or cantonment authority. (Central Act II of 1924). 5) The tax livable from a firm, association or Hindu undivided family may be levied on any adult member of the firm, association or family. 6) Where a person doing the same business in the same name in one or more places within the Town Panchayat, the income of such business in all places within the Town Panchayat shall be computed for the purpose of levy of tax and such person shall pay the tax in accordance with the provisions of this Chapter. 7) Where any company, corporate body, society, firm, body of persons or association, pays the tax under this chapter, any director, partner or member as the case may be, of such company, corporate body, society , firm, body of persons or association shall not be liable to

pay tax under this Chapter for the income derived by such director partner or member form such company, corporate body, society, firm, body of persons or associations. 8) Every person who is liable to pay tax, other than a person earning a salary or wage shall furnish to the executive authority a return in such form, for such period and within such date and in such manner as may be prescribed . Provided that subject to the provisions of sub-sections (10) and (11), such person may make a self-assessment on the basis of average half-yearly income of the previous financial year and the return filed by him shall be accepted without calling for the accounts and without any inspection. 9) Every such return shall accompany with the proof of payment of the full amount of tax due according to the return and a return without such proof of payment shall not be deemed to have been duly filed. 10) Notwithstanding anything contained in the proviso to sub-section (8), the executive authority may select the percent of the total number of such assessment in such manner as may be prescribed for the purpose of detailed scrutiny regarding the correctness of the return submitted by a person in this connection and in such cases final assessment order shall be passed in accordance with provisions of this Chapter. 11) If no return is submitted by any person under sub-section (8) within the prescribed period or if the return submitted by him appears to the executive authority to be incomplete or incorrect, the executive authority shall, after making such enquiry as be may consider necessary assess such person to the best of his judgement: Provided that before taking action under this sub-section, the person shall be given a reasonable opportunity of proving the correctness or completeness of any return submitted by him. 12) Every person who is liable to pay tax under this section, other than a person earning salary or wage:(a) shall be issued with a pass book containing such details relating to such payment of tax as may be prescribed and if the pass book is lost or accidentally destroyed the executive authority may, on an application made by the person accompanied by such fee as may be fixed by the municipal council, issue to such person a duplicate of the pass book. (b) shall be allotted a permanent account number and such person shall quote such number in all his returns to, or correspondence with the executive quote such number in all chalans for the payment of any sum due under this (i) authority; (ii) chapter.

(13) The rate of tax specified under sub-section (2) shall be revised by the municipal council once in every five years and such revision of tax shall be increased not less than twenty-five percent and not more than thirty-five percent of the tax levied immediately before the date of revision. RULES 1.(I) Short title, application and commencements:These rules may be called the Town Panchayats, Municipalities and Municipal Corporations (Collection of arrears of tax on profession, trade, calling and employment) Rules, - 1998. i) These rules shall apply to all Town Panchayats, Municipalities and Municipal Corporations in the State.

ii)

They shall be deemed to have come into force on the 1st October 1998.

2.(i) Filling of return for payment of arrears of tax on profession, trade, calling and employment:Every trader or professional who is in arrears of profession tax shall file a return furnishing the details of amount due by him at the rate already determined by the Council under the provisions of the Tamil Nadu Tax on Professions, Trades Callings, and Employment's Act, 1992 (Tamil Nadu Act 24 of 1992) which was in force for the period from 1st April 1992 to 30th September 1998 in Form-1 to the Commissioner of a Municipality or a Corporation or to the Executive Officer of the Town Panchayats as the case may be on or before the 31st December 1998. The Commissioner or Executive Officer as the case may be, may extend, if necessary, the period for filing the return thirty days from 31 st December 1998 and shall further extend the period to not later than 28.2.1999. 3. (1) Mode of Payment of Tax:(1) The return under rule-2 shall be accompanied a chalan, in support of payment of the arrears of profession tax due by a trader or a professional for the first two half-years commencing from 1.4.1992. Provided that such payment shall be made in the Office of respective local body during office hours on all working days (2) A trader or professional shall pay the remaining arrears of profession tax due up to 30th September, 1998 during every current half-year along with the arrears for the periods not less than of two half-years. Provided that the entire arrears of tax due under the repealed Tamil Nadu Tax on Professions, Trades, Callings and Employment's Act, 1992 (Tamil Nadu Act 24 of 1992) shall be paid not latter than three years period commencing from 1st October 1998. (3) The Commissioner, or the Executive Officer as the case may be shall accept the return and acknowledge the receipt of payment of arrears of tax amount paid by the trader or professional. 4. Interpretation of these rules by the Government :(1) If any question arises as interpretation of these rules, the question shall be referred to the Government, whose decision shall be final.
(2) If any difficulty arises in giving effect to the provisions of these rules, the Government may, by order, do anything which appears to be necessary, for the purpose of removing the difficulty.

EXGRATIA
A sum of money paid when there was no obligation or liability to pay it. For example, a lump sum payment over and above the pension benefits of a retiring employee. In insurance claims, it may take the form of payment for which the insurer did not appear to be liable. Ex gratia is Latin for "out of goodwilll." Also called ex gratia settlement.

EMPLOYEES' PROVIDENT FUND SCHEME 1952 Employee Definition: "Employee" as defined in Section 2(f) of the Act means any person who is employee for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer and includes any person

employed by or through a contractor in or in connection with the work of the establishment. Membership: All the employees (including casual, part time, Daily wage contract etc.) other then an excluded employee are required to be enrolled as members of the fund the day, the Act comes into force in such establishment. Basic Wages: "Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include a. The cash value of any food concession; b. Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment. c. Any present made by the employer.

Excluded Employee: "Exclude Employee" as defined under pare 2(f) of the Employees' Provident Fund Scheme means an employee who having been a member of the fund has withdraw the full amount of accumulation in the fund on retirement from service after attaining the age of 55 years; Or An employee, whose pay exceeds Rs. Five Thousand per month at the time, otherwise entitled to become a member of the fund. Explanation: 'Pay' includes basic wages with dearness allowance, retaining allowance, (if any) and cash value of food concessions admissible thereon. Employee Provident Fund Scheme: Employees' Provident Fund Scheme takes care of following needs of the members: (i) Retirement (ii) Medical Care (iii) Housing (iv) Family obligation (v) Education of Children (vi) Financing of Insurance Polices How the Employees' Provident Fund Scheme works: As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in the case of following establishments:

Any covered establishment with less then 20 employees, for establishments cover prior to 22.9.97. Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction, Any establishment which has at the end of any financial year accumulated losses equal

to or exceeding its entire net worth and

Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund Scheme by the employee and employer will be as under with effect from 22.9.1997.

Employees' Provident Fund Interest rate: The rate of interest is fixed by the Central Government in consultation with the Central Board of trustees, Employees' Provident Fund every year during March/April. The interest is credited to the members account on monthly running balance with effect from the last day in each year. The rate of interest for the year 1998-99 has been notified as 12%. The rate of interest for 992000 w.e.f. 1.7.'99 was 11% on monthly balances. 2000-2001 CBT recommended 10.25% to be notified by the Government. Benefits: A) A member of the provident fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 year. Full amount in provident fund can also be withdraw by the member under the following circumstance: A member who has not attained the age of 55 year at the time of termination of service. A member is retired on account of permanent and total disablement due to bodily or mental infirmity. On migration from India for permanent settlement abroad or for taking employment abroad. In the case of mass or individual retrenchment.

B) In the case of the following contingencies, the payment of provident fund be made after complementing a continuous period of not less than two months immediately preceding the date on which the application for withdrawal is made by the member: Where employees of close establishment are transferred to other establishment, which is not covered under the Act: Where a member is discharged and is given retrenchment compensation under the Industrial Dispute Act, 1947.

Withdrawal before retirement: A member can withdraw upto 90% of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuation whichever is later. Claim application in form 19 may be submitted to the concerned Provident Fund Office. Accumulations of a deceased member: Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office. Transfer of Provident Fund account: Transfer of Provident Fund account from one region to other, from Exempted Provident Fund Trust to Unexampled Fund in a region and vice-versa can be done as per Scheme. Transfer Application in form 13 may be submitted to the concerned Provident Fund Office. Nomination: The member of Provident Fund shall make a declaration in Form 2, a nomination conferring

the right to receive the amount that may stand to the credit in the fund in the event of death. The member may furnish the particulars concerning himself and his family. These particulars furnished by the member of Provident Fund in Form 2 will help the Organization in the building up the data bank for use in event of death of the member. Annual Statement of account: As soon as possible and after the close of each period of currency of contribution, annual statements of accounts will de sent to each member through of the factory or other establishment where the member was last employed. The statement of accounts in the fund will show the opening balance at the beginning of the period, amount contribution during the year, the total amount of interest credited at the end of the period or any withdrawal during the period and the closing balance at the end of the period. Member should satisfy themselves as to the correctness f the annual statement of accounts and any error should be brought through employer to the notice of the correctness Provident Fund Office within 6 months of the receipt of the statement.

Bonus
Definition: A monetary payment made to an employee over and above their standard salary or compensation package Bonuses are one of the ways employers reward their employees for a job well done. And offering regular, significant bonuses is a way to keep your best people from looking elsewhere for a job. Bonuses are usually determined as a percentage of annual salary, though giving all employees the same monetary bonus is also an option. Much depends on your corporate philosophy and goals. A growing number of employers are reducing salaries and increasing the portion of compensation that's performance-based, such as bonuses. Through this approach, companies can more directly and immediately reward outstanding achievement. And many firms are basing bonuses on the performance of not just the employee but the company as well in order to reward both personal and team accomplishments.