Skilled Tax is a Tax which is levied by the State on the Earnings earned by the use of occupation, commerce, calling or employment. This type of tax was first levied in India within the yr 1949 and the ability to levy Skilled Tax has been given to the States by the use of Clause (2) of Article 276 of the Structure of India.
This Tax is levied based mostly on slab charges relying on the Earnings of the Particular person. This Tax is rather like Earnings Tax aside from the truth that Earnings Tax is collected by the Central Govt and Skilled Tax is collected by the State Authorities. When this tax was first launched in India, the utmost restrict on the tax to be collected was Rs. 250. Nonetheless, this restrict was raised from Rs. 250 to Rs. 2500 within the yr 1988.
For the previous few years, State Governments have been requesting the Parliament to lift this ceiling from Rs. 2500 to Rs. 7500. Nonetheless, their request has not been accepted and the most quantity of Skilled Tax that may be levied by any State is Rs. 2,500 solely.
Any quantity paid as Skilled Tax to the State Govt. is allowed as a deduction beneath Part 16 of the Earnings Tax Act and Earnings Tax on the Stability Quantity is levied as per the Earnings Tax Slab Charges in drive.
In case of Salaried and Wage earners, the Skilled Tax is liable to be deducted by the Employer from the Wage/Wages and the Employer is liable to deposit the identical with the state authorities. In case of different class of People, this tax is liable to be paid by the individual himself.
Skilled Tax in India is collected by some state governments themselves whereas in a number of different states which have lively Panchayats, the native our bodies themselves levy and this tax. Each individual liable to pay this Tax (both on his personal behalf or on behalf of its worker) shall apply for Skilled Tax Registration within the prescribed kind with the prescribed authority.
Because the states have been empowered to levy and gather this Tax, totally different states levy Skilled Tax as per Completely different Slab Charges. The Skilled Tax Slab Charges in a few of the main states in India are given beneath:-
- New Delhi
- West Bengal
- Madhya Pradesh
- Tamil Nadu
- Andhra Pradesh
Skilled Tax in Maharashtra is ruled by the Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975 which got here into impact from 1st April 1975. The Skilled Tax Slab Charges on Wage and Wages in Maharashtra are as follows:-
|Month-to-month Wage||Quantity payable in Maharashtra|
|Lower than Rs. 7500||Nil|
|Rs. 7501 to Rs. 10000||Rs. 175 pm|
|Rs. 10001 & above||Rs. 200 pm aside from the month of Feb
Rs. 300 for the month of Feb
Completely different Slab Charges have been prescribed for various class of People by the Maharashtra State Govt. and the above slab charges are just for Salaried People and Wage Earners.
For all different class of People, Maharashtra State Govt has prescribed totally different slab charges and the Particular person is himself liable to pay this Tax. For an in depth checklist of Slab Fee in Maharashtra on totally different class of People refer this checklist.
The Maharashtra State Govt has additionally introduced a composition scheme beneath which any individual liable to make fee to the Maharashtra State Govt @ Rs. 2500 p.a. could make a onetime lump-sum fee prematurely of Rs. 10,000 and his legal responsibility for the following 5 years can be discharged.
The Curiosity levied for late fee of this Tax in Maharashtra is 1.25% per thirty days and the Maharashtra State Authority may impose penalty @ 10% of the Whole Tax due. Varieties for Registration and Cost of Skilled Tax might be downloaded from right here.
In December 2004, the Municipal Company of Delhi (MCD) tried to implement skilled tax on these residing and dealing in New Delhi. Nonetheless, this proposal was rejected by the Standing Committee of the MCD. And subsequently, this Tax is just not levied in New Delhi.
Skilled Tax in Karnataka is levied beneath the Karnataka Tax on Professions, Commerce, Callings and Employment Act, 1976. Skilled Tax Slab Charges in Karnataka on Wage and Wage earners are as follows:-
|Month-to-month Wage||Quantity payable in Karnataka|
|Lower than Rs. 15,000||Nil|
|Rs. 15,000 & above||Rs. 200 per thirty days|
Completely different Slab Charges in Karnataka have been prescribed for various class of People and the above slab charges are just for Wage/ Wage earners. For detailed checklist on the slab charges of various class of People in Karnataka refer this checklist.
For late fee of Skilled Tax in Karnataka, Curiosity @ 1.25% per thirty days can be levied and a most penalty of fifty% of the Whole Quantity due may be levied by the Karnataka authority. The Varieties for Registration and for fee of this tax might be downloaded from right here.
Skilled Tax in West Bengal is ruled by the West Bengal State Tax on Professions, Trades, Callings and Employment Act, 1979. The Skilled Tax Slab Charges in West Bengal with impact from 01/04/2013 on Wage & Wage earners are as follows:-
|Month-to-month Wage||Quantity payable in West Bengal|
|Lower than Rs. 8500||NIL|
|Rs. 8501 to Rs. 10000||Rs. 90 pm|
|Rs. 10001 to Rs. 15000||Rs. 110 pm|
|Rs. 15001 to Rs. 25000||Rs. 130 pm|
|Rs. 25001 to Rs. 40000||Rs. 150 pm|
|Rs. 40001 & above||Rs. 200 pm|
The above slab charges in West Bengal are solely relevant to Salaried and Wage earners. For slab charges in West Bengal on different class of People, refer this checklist.
The Varieties for Registration and Cost of this tax in West Bengal might be downloaded from right here. In case of any delay in depositing this Tax with the West Bengal Govt, Curiosity @ 1% pm can be levied. The West Bengal govt may levy penalty @50% of the Whole Quantity Due.
Skilled Tax in Madhya Pradesh (MP) is levied by the Madhya Pradesh Vritti Kar Adhiniyam, 1995. As per Notification No. 174 dated 31/03/2012 printed within the MP Gazette, the next Slab Charges can be relevant in Madhya Pradesh on salaried earnings wef 1st April 2012 onwards
|Month-to-month Wage||Quantity payable in Madhya Pradesh|
|Lower than Rs. 12500||Nil|
|Rs. 12500 to Rs. 14999||Rs. 125 pm|
|Rs. 15000 & above||Rs. 208 from April to Feb & Rs. 212 in March|
For slab charges on different class of people, refer this checklist.
Skilled Tax in Tamil Nadu is levied beneath the City Panchayats, Municipalities & Municipal Companies Guidelines 1988. The Slab Charges in Tamil Nadu on salaried earnings are as follows:-
|Month-to-month Wage||Quantity payable in Tamil Nadu|
|Lower than Rs. 3500||Nil|
|Rs. 3501 to Rs. 5000||Rs. 16.66 pm|
|Rs. 5001 to Rs. 9000||Rs. 40|
|Rs. 9001 to Rs. 12500||Rs. 126.67 pm|
|Rs. 12501 & above||Rs. 182.50 pm|
Skilled Tax in Andhra Pradesh is levied beneath the Andhra Pradesh Tax on Professions, Trades, Callings and Employment Act 1987. The Slab Charges in Andhra Pradesh on Wage/ Wage earners are as follows:-
|Month-to-month Wage||Quantity payable in Andhra Pradesh|
|As much as Rs. 15000||Nil|
|Rs. 15001 to Rs. 20000||Rs. 150 pm|
|Rs. 20,000 & above||Rs. 200 pm|
Skilled Tax in Gujarat is ruled by the Gujarat Panchayats, Municipalities, Municipal Companies and State Tax on Professions, Merchants, Callings and Employment Act 1976. The Slab Charges in Gujarat are as follows:-
|Month-to-month Wage||Quantity payable in Gujarat|
|Lower than Rs. 5999||Nil|
|Rs. 6000 to Rs. 8999||Rs. 80 per thirty days|
|Rs. 9000 to Rs. 11999||Rs. 150 per thirty days|
|Rs. 12000 & above||Rs. 200 per thirty days|
The above skilled tax slab charges are wage/ wage earners. For different class of People refer this checklist. The Varieties for Skilled Tax Registration and Cost of this Tax in Gujarat might be downloaded from right here.