The Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976
The Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976 (commonly know as Profession Tax Act) came into force with the object of levying tax on professions, trades, callings and employments. It extends to the whole state of Gujarat.
Professional Tax is the tax levied by the State Government on the income from Profession, or Employment and is collected through the Commercial Tax Department of the State. In the cases of employment, the employer shall deduct the tax from the salary and deposit the same to the State Government and the employer shall furnish a return to the tax department in the prescribed form in a specified time frame along with proof of tax payment. The other individual professionals shall pay their respective tax directly to the Government as prescribed under the Professional tax rules.
The amount of professional tax deducted / payable by an employee /professional differs from State to State based on the slabs prescribed by respective States under corresponding Professions, Trades, Callings, And Employments Act & Rules.
The professional tax is levied only in certain States; there are some states and union territories wherein this tax is not levied.
Applicability and Scope
Every person engaged in any profession, trade, calling or employment in Gujarat is liable, including individuals, HUFs, firms, companies, associations, societies, etc.
Employers are liable to deduct tax from employees' salaries and remit the same.
Registration and Enrolment
Employers
Must obtain a Certificate of Registration (Form 1 ➝ Certificate in Form 2) within 60 days of becoming liable.
A separate registration is required for each jurisdiction if the employer has work locations in different areas.
Persons (Non-Salaried)
Must obtain a Certificate of Enrolment (Form 3 ➝ Certificate in Form 4) within 60 days of becoming liable.
Returns and Payments
Monthly Return (Rule 11)
Employers must file Form 5 within 15 days of the following month.
Annual Return (Rule 11A)
Employers with ≤20 employees may file annual return (Form 5-AA).
Tax to be paid quarterly, even for annual return filers.
Consolidated Return
Permitted upon application in Form 5-C (monthly) or Form 5-CC (annual) for employers with multiple places of business.
Payment of Tax
Employees
Deducted by employer monthly as per slab rates (Schedule I).
Paid via challan in Form 10 under the specified treasury head.
Enrolled Persons
Must pay by 30th September every year (if enrolled before 31st August), else within 1 month of enrolment.
Maintenance of Records
Employers must maintain a register showing salary paid and tax deducted for each employee.
PT Slab
Monthly Salary upto Rs. 12,000 ------- PT per month ----- NIL Monthly Salary above Rs. 12,000 ------ PT per month ----- Rs. 200
Last updated on 04 June 2025