Professional tax in Meghalaya: Tax slab, payment, and registration

The Meghalaya state government levies professional tax on salaried employees, business professionals, and self-employed individuals. The revenue collected from this tax contributes to public welfare initiatives. If you earn an income in Meghalaya, you may be liable to pay professional tax, depending on your earnings.

This guide covers the applicability, regulations, tax slab rates, deduction cycle, and payment methods for professional tax in Meghalaya.

Professional tax in Meghalaya

The Meghalaya professional tax applies to all salaried employees, freelancers, and self-employed individuals earning a livelihood within the state. This tax is determined based on an individual’s income, with the maximum payable amount capped at ₹2,500 per year.

Employers are responsible for calculating and deducting the applicable tax from their employees' salaries and remitting it to the Meghalaya Taxation Department. Self-employed individuals must assess their tax liability and ensure timely payments to avoid penalties.

The revenue collected from professional tax contributes to the state’s development initiatives, including infrastructure and public services.

Applicability of professional tax in Meghalaya

The professional tax act in Meghalaya applies to the following individuals and entities:

• Individuals: Anyone earning an income through employment, including salaried employees, professionals, and contract workers.
• Freelancers: Individuals who provide services independently without being tied to a specific employer.
• Self-employed individuals: Entrepreneurs, sole proprietors, and independent professionals who generate their own income.
• Salaried employees: Employees working in any government or private organization within Meghalaya.
• Employers: Organizations responsible for deducting and remitting professional tax on behalf of their employees.
• Businesses: All commercial entities engaged in trade, services, or any revenue-generating activities.

Foreign employees, diplomatic offices, embassies, and consulates operating in the state are exempt from professional tax.
 

Meghalaya professional tax registration process

Businesses operating in Meghalaya must obtain two key certificates: the Professional Tax Registration Certificate (PTRC) and the Professional Tax Enrollment Certificate (PTEC). The PTRC is required for employers deducting professional tax from employees’ salaries, whereas PTEC is for individuals liable to pay professional tax on their income.

It is mandatory for employers to obtain the registration certificate within 30 days of becoming liable to pay tax. Failure to register or pay tax can result in penalties.

Professional tax slab rates in Meghalaya

Refer to the table below to find the professional tax slab in Meghalaya that corresponds to monthly salary range:

Meghalaya professional tax payment steps

Once you determine the tax liability for yourself and your employees, you must deduct it monthly and remit it to the government. There are two ways to pay professional tax in Meghalaya:

Due date to pay professional tax in Meghalaya

Professional tax in Meghalaya must be paid before the 28th of every month. For instance, if you process salaries in the first week of May, you must deduct the applicable tax, and deposit it by May 28th to avoid penalties.

Meghalaya professional tax late payment penalty

Just like other taxes, failing to pay professional tax on time also result in penalties.

• A 2% penalty per month on the outstanding tax amount, which can increase up to 10% for prolonged delays.
• Fraudulent submission of documents can attract a fine up to three times the actual tax liability.

Professional tax exemption in Meghalaya

Certain individuals in Meghalaya are exempt from paying professional tax. These include minors under 18 years of age, senior citizens above 60, and individuals with disabilities. Additionally, unemployed individuals, members of the armed forces, and those engaged in social work or religious activities are also not required to pay this tax.

Compliance forms for Meghalaya professional tax

Key takeaways

Professional tax in Meghalaya is a mandatory tax levied on individuals engaged in various professions, trades, and employment. Employers must ensure compliance by obtaining the registration certificate, deducting the correct tax amount, and adhering to payment deadlines. Knowing the applicable rates, exemptions, and penalties helps businesses stay compliant and avoid legal issues.

Frequently asked questions