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Professional tax in Mizoram: Tax slab, payment, and registration
Every individual engaged in any profession, trade, or employment in the state of Mizoram falls under the purview of the Mizoram Professions, Trades, Callings, and Employments Taxation Act, 1995. Employers in the state must deduct professional tax from their employees’ salaries and remit it to the state government, contributing to public revenue.
This article provides an overview of professional tax in Mizoram, covering its applicability, tax slab rates, registration process, and payment methods.
Applicability of professional tax in Mizoram
The following individuals and entities are liable to pay professional tax in Mizoram:
- Salaried employees - The employer deducts professional tax from salaries and submits it to the government.
- Self-employed individuals - Professionals such as doctors, lawyers, chartered accountants, and traders must pay the tax directly.
- Business owners - Individuals or entities engaged in business must register and pay professional tax.
Mizoram professional tax registration process
Any individual or entity liable to pay professional tax in Mizoram must register on the official Mizoram government portal - Zotax. The registration process includes:
- Filing Form 1 within 30 days of becoming liable for professional tax. This can be done digitally by logging into the official website.
- Receiving an acknowledgment slip with the date and time for verification at the professional tax registration authority.
- Submitting signed documents – If applying as a business entity, the proprietor, partners, or directors must sign the application.
Documents required for professional tax registration
The following documents must be submitted along with the application:
- Memorandum of Association (MoA) & Articles of Association (AoA) (for companies)
- PAN card (individuals and businesses)
- Lease Agreement (if applicable)
- Identity proof (Aadhaar, Voter ID, etc.)
- Passport-size photograph
- Registration fee (if applicable)
Professional tax slab rate Mizoram
| Monthly salary | Tax per month | Tax per year |
| Below ₹ 5,000 | Nil | Nil |
| From ₹ 5,001 to ₹ 8,000 | ₹ 75 | ₹ 900 |
| From ₹ 8,001 to ₹ 10,000 | ₹ 120 | ₹ 1,440 |
| From ₹ 10,001 to ₹ 12,000 | ₹ 150 | ₹ 1,800 |
| From ₹ 12,001 to ₹ 15,000 | ₹ 180 | ₹ 2,160 |
| Above ₹ 15,001 | ₹ 208 | ₹ 2,500 |
Employers are responsible for calculating the tax liability based on the employee’s monthly salary and the applicable slab rates. After deduction, they must ensure the timely deposit of the deducted tax amount with the government
Professional tax rates for all categories of profession in Mizoram
Different professions attract varying professional tax rates in Mizoram. Below are the applicable rates for individuals and entities other than salaried employees:
| Category of profession | Tax rate per annum |
| Legal practitioners including notaries public and solicitors, medical practitioners, dentists, and medical consultants | ₹2,500 |
| Technical and professional consultants including architects, engineers, Chartered Accountants, actuaries and management consultants | ₹2,500 |
| Directors (other than those nominated by the Government) of Companies registered under the Companies Act, 1956 | ₹2,500 |
| Companies registered under the Companies Act of 1956 and engaged in any Professions, Trades or Callings | ₹2,500 |
| Partnership Firms when engaged in any Professions, Trades or Callings | ₹2,500 |
| Estate agents/promoters/brokers/commission agents/delcredere agents/mercantile agents | ₹2,500 |
| Contractors of all descriptions or classes engaged in any work | 2% of the total contracted amount subject to a maximum of ₹2,500 per annum |
| Suppliers of all descriptions engaged in any supply work | |
| Banking Companies as defined in the Banking Regulation Act, 1949 | ₹2,500 |
| Dealers with annual gross turnover on all sales: | |
| Nil |
| 2% of such annual gross turnover subject to a maximum of ₹2,500 per annum |
| Owner of mechanical, electrical or electronic repair works | 2% of annual gross turnover subject to a maximum of ₹2,500 per annum |
| Owners or lessees of petrol/diesel filling stations and services stations | ₹2,500 |
| Mills owners of rice/atta/flour/oil other than cottage and tiny units as notified by the Government from time to time | |
| Owners of restaurants/hotels (where food is served) | |
| Owners of private institutions, schools, hospitals, medical clinics, diagnostic centres, laboratories, health spa, beauty parlour, or gym |
Mizoram professional tax payment steps
- Visit Mizoram Taxation Department’s official website - www.zotax.nic.in
- Log in to the portal using your credentials and click ‘Make Payment’
- Choose ‘Professional Tax’ and enter your TIN number (if applicable).
- Select payment type, whether monthly, quarterly, or yearly.
- Enter the total tax amount, including interest and penalty, if any.
- Choose your payment method and complete the transaction.
- After payment, note the E-payment reference number and save the E-Challan for future reference.
Due date to pay professional tax in Mizoram
The due date for paying professional tax in Mizoram depends on your enrolment date:
- If enrolled before May 31 - The tax must be paid by June 30 of the same year.
- If enrolled after May 31 - The tax must be paid within one month from the enrolment date.
Mizoram professional tax late payment penalty
Failure to pay professional tax on time may result in penalties, including a fine of up to ₹500 or imprisonment for up to 6 months (in severe cases).
Penalties and imprisonment can also apply in cases of non-compliance with professional tax rules and filing false returns.
Professional tax exemption in Mizoram
Certain individuals and entities are exempt from paying professional tax in Mizoram, including:
- Senior citizens (Individuals aged 65 years and above)
- Members of the armed forces (Army, Navy, and Air Force)
- Registered cooperative societies
- Persons with physical disabilities
- Parents or guardians of children with permanent or mental disabilities
- Women working under Mahila Pradhan Kshetriya Bachat Yojana or Directors of Small Savings
- Badli workers (temporary workers in the textile industry)
Conclusion
Professional tax in Mizoram applies to salaried employees, self-employed professionals, and business owners, contributing to state revenue for education, healthcare, and infrastructure. Staying updated with tax rates, filing deadlines, and exemptions ensures compliance and avoids penalties.
Frequently asked questions
Are freelancers required to pay professional tax in Mizoram?
Yes, freelancers fall under the self-employed category and are required to pay professional tax in Mizoram, provided they earn above the income threshold set by the state government.
What is the maximum professional tax payable in Mizoram?
The maximum professional tax payable is ₹2,500 per year, as per the Central Government limit, applicable across all Indian states, including Mizoram.
How is professional tax calculated?
Professional tax is calculated based on an individual’s gross salary. It is deducted after excluding EPF,gratuity,leave encashment, and employer-provided loans.
Reference
https://zotax.nic.in/files/act/TheMizoramProfessionsTradesCallingsandEmploymentsTaxationAct1995.pdf