Some of the states in India impose ProForm XVII - Memorandum Of Appeafessional taxes on their residents; Chhattisgarh is one of them. The professional tax applies to professionals residing and working in Chattisgarh and to all employed and earning a salary in the state.
All persons earning a salary in Chattisgarh are familiar with the term Professional tax and would have seen it on their salary slip or while submitting the Form XVII memorandum of appeal. However, most salaried individuals find it challenging to comprehend this compliance. They are disturbed to see the tax levy included in the Form XVII memorandum of appeal as a deduction from their salary.
Here we discuss the Form XVII memorandum of appeal relating to professional tax payment appeals in Chattisgarh.
The article contains:
- What is Professional Tax in Chattisgarh?
- Chhattisgarh Professional Tax Compliance
- Who is Liable to pay Professional Tax in Chattisgarh and to Whom?
- In Chattisgarh, How Do You Pay Professional Tax?
- In Chattisgarh, Who can Deduct Professional Tax?
- When Is The Deadline For Paying Professional Taxes In Chhattisgarh?
- In Chhattisgarh, Who Is Exempt From Paying Professional Tax?
- What is a Memorandum of Appeal?
- Rule 21 Submission of the Memorandum of Appeal and the Time Stipulation
- What Should A Memorandum Of Appeal Contain?
- When is a Memorandum of Appeal Rejected by the Authorities?
- What To Expect in the case of Memorandum of Appeal Rejection?
- Key Takeaways
What is Professional Tax in Chattisgarh?
A professional tax is a levy imposed by a state government of Chattisgarh on anybody who earns money irrespective of the medium employed. Contrary to its name, professional tax is not only for professionals but for everyone. You will find Individuals from all professions, trade callings, and employments and trades on the list.
Your payslip will list professional tax on the deductions side. The tax amount differs, however, from state to state. The lower limit may be INR 200, and the upper limit may be fixed at INR 2,500 per person annually in some of the states in India. These figures are the minimum and maximum amount a state can charge as professional taxes. Section 16 (iii) of the Income Tax Act of 1961 allows for a professional tax deduction.
The professional tax that an employee pays is permitted to deduct from their gross salary during income tax returns submission under the above provision. Check the table below to know the professional tax rates in Chattisgarh.
(Salary and Wage Earners Per Annum)
Professional Tax Slab Rates (Per Annum)
Salary does not exceed ₹ 40,000
Salary exceeds ₹ 40,000 but less than ₹ 50,000
Salary exceeds ₹ 50,000 but less than ₹ 60,000
Salary exceeds ₹ 60,000 but lower than ₹ 80,000
Salary Exceed ₹ 80,000 but lower than ₹ 1,00,000
Salary Exceeds ₹ 1,00,000 but less than ₹ 1,50,000
Salary exceeds ₹ 1,50,000 but and ₹ 2,00,000
Salary exceeds ₹ 2,00,000 but lower than ₹ 2,50,000
Salary exceeds ₹ 2,50,000 but lower than ₹ 3,00,000
Salary above ₹ 3,00,000
Salaried individuals earning a maximum of INR 40,000 are exempt from paying professional Tax in Chattisgarh. The minimum amount of professional tax levy is INR 360 in Chattisgarh, and the maximum amount is INR 2400.
The professional tax in Chhattisgarh comprises special allowance, dearness allowance, bonus, and additional income from arrears, leave surrender, etc.
Chhattisgarh Professional Tax Compliance
The Chhattisgarh Professional Tax Rules, or Chhattisgarh Vritti Kar Adhiniyam, were enacted in 1995. According to this law, all salaried personnel must pay Chhattisgarh Professional Tax, and the Chattisgarh State Treasury collects Professional tax in the state. Both employers and individuals must get registration certification within 30 days of becoming eligible to pay Chhattisgarh professional tax.
A person could be working at more than one location in Chhattisgarh. In that case, they must submit a single application, designating one of the major places of employment and the others as supplementary places of work.
Who is Liable to pay Professional Tax in Chattisgarh and to Whom?
In Chhattisgarh, the Commercial Tax Department is in charge of collecting Professional taxes.
According to the Chhattisgarh Professional Tax Act, everyone who conducts a business, either directly or via an agent or representative, or earns income from any profession, calling, or any other form of employment must pay professional tax depending on their earnings. The professional taxpayers should be working full-time or part-time in Chhattisgarh.
As a result of this classification, professional taxpayers may be:
- Individuals who earn a salary
- Self-employed person
In Chattisgarh, How Do You Pay Professional Tax?
Employers pay professional tax on behalf of their workers. The employers withhold the employee's salaries or wages in the prescribed method by employers every month before paying the complete compensation to them. Employers who pay employees a wage but do not deduct professional tax must remit the tax to the state government.
On the other hand, self-employed persons must pay Professional tax directly to the State Government in Chhattisgarh.
In Chattisgarh, Who can Deduct Professional Tax?
- Every employer, excluding a Central Government or Chhattisgarh Government officer, is responsible for deducting the required amount of tax from their employee's pay or compensation
- In the event of a Central Government or State Government employee, the drawing and disbursing officer is responsible for deducting the amount of tax due from the employee's pay bill
- In the case of the Government of Chhattisgarh workers, the drawing and disbursing officer would deduct the tax from the employees' salary or earnings in the pay bills
- While disbursing salaries or wages, the drawing and disbursing officer of the Central Government or any other State Government would deduct the tax in cash
When Is The Deadline For Paying Professional Taxes In Chhattisgarh?
Employers must pay professional tax by treasury challan within ten days of the end of the month (from which they made the deduction).
Individuals who are not employers, on the other hand, must pay a professional tax to the state every year. Individuals who register as the financial year begins or on or before August 31 of that year must pay Professional tax in Chhattisgarh by September 30 of that year. Individuals who register after August 31 must pay P tax within 30 days of their registration.
Individuals and businesses who fail to pay professional tax in Chhattisgarh without justifiable cause must pay 2% of the entire due amount (per month) or the highest 2/3 of the total due amount.
In Chhattisgarh, Who Is Exempt From Paying Professional Tax?
Certain persons do not need to pay professional taxes. The following are some of them:
- Parents of children with a mental illness or a long-term impairment
- Textile industry employees, known as Badli
- People who have a permanent physical handicap, such as blindness.
- Armed services personnel as specified under the Army Act of 1950, the Air Force Act of 1950, and the Navy Act of 1957
- Individuals above the age of 65
- auxiliary forces personnel serving in Chattisgarh
- Women who work for the Director of Small Savings or Mahila Pradhan Kshetriya Bachat Yojana as agents
- Under particular conditions or in the public interest, the Chhattisgarh State Government can exempt any person, employer, or class of employers from paying Professional tax within Chattisgarh
What is a Memorandum of Appeal?
When a Professional Taxpayer is unhappy with the amount of tax or penalty imposed on him, he may appeal against the order. However, the concerned person must present his appeal through Form XVII—a memorandum of appeal for perusal by the concerned authorities.
Rule 21 Submission of the Memorandum of Appeal and the Time Stipulation
As per Rule 21memorandum of appeal, the application for revision under Section 18(1) must be in form 11-A and must file the same within one calendar year of the date of the order to be revised.
However, suppose the revision is against an assessment order. In that case, no filing of modifications if an appeal via a memorandum of appeal is pending or the time for filing the memorandum of appeal has not expired.
The above rule holds good, providing that an application for review of an order made before the Vritti Kar Sansodhan Adyadesh, 2001 (No.9 of 2001) under the Act must be filed on or before December 31, 2002.
What Should A Memorandum Of Appeal Contain?
The Chhattisgarh Professional Tax Rules, or Chhattisgarh Vritti Kar Adhiniyam, 1995 Rule 21 requires the plaintiff to submit the memorandum of appeal as follows for approval by the concerned authorities.
A memorandum of appeal under Section 17 shall:
(a) The memorandum of appeal should be presented in Form 17
(b) The memorandum of appeal should be presented to the appropriate Profession Tax Appellate Authority by the person appealing in person or by his duly authorized agent or legal practitioner or be sent by registered post to such authority
(c) The memorandum of appeal should contain a clear statement of the relevant facts and state precisely the relief prayed for
(d) The memorandum of appeal must accompany an authenticated copy of the order against which the memorandum of appeal is filed. As well as other relevant papers
(e) The memorandum of appeal should be duly signed and verified by the appellant
(f) The memorandum of appeal should be accompanied by a treasury receipted challan in proof of having paid in full the amount of tax or penalty in respect of which the appeal is preferred
When is a Memorandum of Appeal Rejected by the Authorities?
The Memorandum of Appeal may be rejected because the defendant may have:
(a) Ignored to comply with the memorandum of appeal compliance as per the provisions of Section 17
and (b) Filed the memorandum of appeal after the expiry of the specified period in sub-section (2) of Section 17
and (c) Non-compliance in the memorandum of the appeal generation as per any requirement of sub-rule (1)
What To Expect in the case of Memorandum of Appeal Rejection?
In the case of rejection of the memorandum of appeal, the authorities may do one of the following:
- Suppose the Profession Tax Appellate Authority does not dismiss the appeal expeditiously as provided in sub-rule (2). In that case, it will set a date for the appellant or his legally authorized representative to be heard
- Suppose the appellant fails to appear in person or appoint a person legally authorized by the appellant to represent him before the said authority on the date set for the hearing or extended date to which the hearing may be extended. In that case, the said authority may dismiss the appeal or consider it ex parte as it sees fit
- The one who appeals will receive a copy of the appealed order, and the authority that issued the impugned order will receive another copy
There are a few things that salaried persons cannot ignore about professional tax in Chattisgarh or anywhere in the country. It is good to remember that all salaried persons must pay professional tax as per the slab rate that applies to them, depending on their income. The second important point to consider here is that you can show your professional tax payments as deductions from your salary while submitting your income tax returns. Thirdly, the professional tax levy is not applicable or uniform to all Indian states.
And finally, if the defendant wants to apply against the professional tax levy or penalty, he must appeal by using the memorandum of appeal only. This post applies only to those salaried persons residing and earning their living in Chattisgarh.
- The Rule 21 Chhattisgarh Professional Tax Rules, or Chhattisgarh Vritti Kar Adhiniyam,1995, governs form XVII memorandum of appeal
- The memorandum of appeal can be submitted only on Form XVII
- The concerned authority may reject the memorandum of appeal if it does not have an authenticated copy of the order against which the memorandum of appeal is filed as to its attachment
- The one who submits the memorandum of appeal must appear for the hearing or risk its rejection
- If the defendant cannot be present for the hearing of his plea, he must appoint a legal representative or request for a time extension to avoid rejection of the memorandum of appeal
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