The Professional Tax in Maharashtra state

What is Professional Tax?

Professional tax is state level tax.

Professional tax is duty which is paid by every person who resistance of Maharashtra state and earned money from business, employer or any other sources.

In Maharashtra (Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975), Profession Tax is applicable both on  Individuals &  Organizations (Company, Firm, Proprietary Concern, Hindu Undivided Family (HUF), Society, Club, Association Of Persons, Corporation or any other corporate body in Maharashtra per the provisions of the Maharashtra Professional Tax Act of 1975.

What is Professional Tax slab rate for employees?

Slab Rate	Before 1.7.2009	After 1.7.2009
Up to Rs. 2500	Nil	Nil
Exceeds Rs. 2500 But Less Than Rs. 3500	60	Nil
Exceeds Rs. 3500 But Less Than Rs. 5000	120	Nil
Exceeds Rs. 5000 But Less Than Rs. 10000	175	175
Exceeds Rs. 10000	2500 It must be paid at Rs. 200 per month except for the month of February it is Rs. 300.	2500 It must be paid at Rs. 200 per month except for the month of February it is Rs. 300.

Who is exempts for Professional Taxes?

Professional Tax is exempts for those persons, whose age crossed 65 years (a senior citizen) and another who is physically disability above 40%

What are criteria of filling the return?

Following is criteria are applicable for filling return.

1)    Annual Professional tax liabilities is up to Rs. 5000        -      Annual filling return

2)    Annual Professional tax liabilities is exceeds to Rs. 5000 but not less than Rs. 20000  -  Quarterly filling return

3)    Annual Professional tax liabilities is exceeds to Rs. 20000  -  monthly  filling return

How much penalty charges?

If the concern person is not pay professional tax liabilities in proper time. Then he has been applicable for penalty charges it’s 1.25% per month

Rules of Account

Accounting rules

All account heads are classifies in three account head, These are Real Account, Personal Account, Nominal Account.  It is helpful for maintain of systematic account. The Institute of charted accountant is a bigger institute of India provided three basic rules for accounting.

Following are description of each rule with exam

1)    Real Account

Rule                                 Debit what comes in

                                        Credit what goes out

For Example: Mr. Ram is purchased a motor cycle for the worth of Rs. 20000/-Above example is an applicable real account rule. Following entry is wrote of Mr. Ram in his books of account. 

            Furniture account                     Dr

                                        To Cash account                         Cr

2)    Personal Account

Rule                                 Debit the receiver

                                         Credit the giver

For Example: Mr. Ram paid cash to Mr. Vijay for Rs. 5000/-

Above example is an applicable for Personal account. Following entry is wrote of Mr. Ram in his books of accounts. 

                                        Mr. Vijay Account                           Dr

                                        To Cash account                              Cr

3)    Nominal Account

Rule                              Debit all expenses & Losses 

                                     Credit all income & gains

For Example: Mr. Ram paid wages for Rs. 15000/-for business purpose

Above example is an applicable for Nominal account. Following entry is wrote of Mr. Ram in his books of account.

                                       Wages Account                                     Dr

                                        To Cash account                                   Cr