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Professional tax in Nagaland: Tax slab, payment, registration process
The Nagaland state government levies a professional tax on individuals earning income through employment, self-employment, business, or freelancing. The revenue collected contributes to public welfare initiatives.
This guide covers the applicability, regulations, deduction cycle, and payment methods related to professional tax in Nagaland.
Professional tax in Nagaland
The Nagaland state government imposes a professional tax on individuals earning income in the state. This tax is governed by the Nagaland State Tax on Professions, Trades, Callings and Employment Act, 1975.
Applicability of professional tax in Nagaland
Any individual earning an income in Nagaland is required to pay professional tax, provided they meet the eligibility criteria. The following individuals and entities fall under the purview of the professional tax act.
- Salaried employees: Employees working in a company whether in the government or private sector
- Freelancers: Individuals offering services or skills to clients without being tied to a specific employer
- Self-employed individuals: Business owners, consultants, and independent professionals
- Businesses: Organisations engaged in any type of commercial activity
- Employers: Responsible for deducting and remitting professional tax on behalf of employees.
Nagaland professional tax registration process
Individuals and business owners liable to pay professional tax must register through the official Nagaland Department of Taxes website.Accurate documentation is crucial; any errors require re-registration.
Documents required for professional tax registration
- Identity proof (Aadhaar, Voter ID, etc.)
- Memorandum of Association & Articles of Association (for companies)
- PAN card
- Lease agreement (if applicable)
- Passport-size photograph
- Address proof
Step-by-step professional tax registration
Eligible individuals can register for professional tax in Nagaland through either online or offline mode. To complete the process digitally, visit the official website and follow these steps:
- Under the "Commissionerate of Taxes" section, select Registration for VAT/CST/Professional Tax/Luxury Tax (as applicable).
- Fill in the required details, including personal information, business details, and contact information.
- Attach scanned copies of documents such as PAN card, address proof, and other relevant certificates.
- Review all entered information for accuracy and submit the application online.
The tax authorities will process and verify your application. Upon successful verification, you will receive the Professional Tax Registration Certificate, allowing you to commence tax payments.
You can also register offline by visiting your local tax department office.
- Collect the professional tax registration and fill it out accurately with all necessary details.
- Prepare physical copies of required documents, such as your PAN card, address proof, trade license, and other business certificates.
- Hand in the completed application form along with the documents to the assessing authority.
- The authorities will review your submission, and upon approval, you will be issued the professional tax registration certificate.
Nagaland professional tax slab rates
| Monthly gross salary | Monthly tax amount |
| Up to ₹ 4,000 | Nil |
| From ₹ 4,001 to ₹ 5,000 | ₹ 35 |
| From ₹ 5,001 to ₹ 7,000 | ₹ 75 |
| From ₹ 7,001 to ₹ 9,000 | ₹ 110 |
| From ₹ 9,001 to ₹ 12,000 | ₹ 180 |
| ₹ 12,000 and above | ₹ 208 |
Professional tax rates for all categories of profession in Nagaland
| Profession | Yearly tax amount |
| Legal practitioners, medical professionals, technical and professional consultants, architects, engineers, consultants, plumbers, electricians and tax consultants: | |
| ₹ 500 |
| ₹ 1,000 |
| ₹ 2,000 |
| Companies registered under the Companies Act, 1956 (1 of 1956) and engaged in any profession, trade or callings | ₹ 2,500 |
| Director (excluding those nominated by the Government) of companies registered under the Companies Act, 1956 | ₹ 2,500 |
| Banking companies as defined in the Banking Regulation Act, 1949 | ₹ 2,500 |
| Members of associations recognized under the Forward Contracts (Regulation) Act, 1952 | ₹ 2,500 |
| Chiefs agents, principal agents, special agents, surveyors or loss assessors whose annual gross income is: | |
| Nil |
| ₹ 1,500 |
| ₹ 2,000 |
| Estate Agents or brokers or promoters or commission agents | ₹ 2,500 |
| Contractos whose gross annual income is: | |
| Nil |
| ₹ 1,000 |
| ₹ 1,500 |
| ₹ 2,500 |
| Dealers in the state whose annual gross income is: | |
| Nil |
| ₹ 350 |
| ₹ 750 |
| ₹ 1,000 |
| ₹ 1,500 |
| ₹ 2,000 |
| ₹ 2,500 |
| Co-operative societies registered or deemed to be registered under the Assam Co-operative Societies Act and engaged in any profession, trade, or calling: | |
| ₹ 2,500 |
| ₹ 1,500 |
| ₹ 500 |
To learn about professional tax rates for different categories of individuals, refer to the Professional Tax Act of Nagaland PDF.
Due date to pay professional tax in Nagaland
The professional tax payment deadline depends on your enrollment date.
- If your organization was enrolled before the start of the year or by August 31, the tax must be paid by September 30.
- If you enrolled after August 31, the payment is due within one month from the enrollment date.
Nagaland professional tax late payment penalty
If a registered employer or enrolled individual fails to pay the professional tax amount within the specified deadline, a penalty will be imposed. The assessing authority typically levies a penalty of up to 50% of the outstanding tax amount.
Professional tax exemption in Nagaland
The following individuals are exempt from paying professional tax in Nagaland:
- Individuals below 18 years and above 60 years
- Unemployed individuals
- Persons with disabilities
- Members of the armed forces
- Individuals engaged in social work or religious activities
Compliance forms for Nagaland professional tax
| Form | Description |
| Form I | Application for registration |
| Form II | Application for enrollment |
| Form III | Certificate to be given by an individual to their employer |
| Form IV | Certificate to be given by an individual who is engaged in the employment of more than one employer |
| Form V | Returns of tax payable |
| Form V-A | Returns to be furnished by an employee |
| Form VI | Challan |
| Form VII | Receipt for the amount of tax, interest, and penalty |
| Form XII | Appeal/ Revision application against an order of assessment/ appeal/ penalty/ interest |
| Form XV | Claim for refund |
| Form XVII | Register of collection |
Key takeaways
Understanding and complying with Nagaland’s professional tax regulations is essential for all earning individuals. Timely registration, accurate tax payments, and adherence to rules help avoid penalties while contributing to state welfare. Stay updated on due dates, tax slabs, and exemptions to ensure smooth compliance.
Frequently asked questions
Does Nagaland charge professional tax?
Yes, the Nagaland state government levies professional tax on employees, business professionals, self-employed individuals, and freelancers earning above a specified income level.
Who is exempted from paying professional tax in Nagaland?
Individuals earning less than ₹4,000 per month in Nagaland are exempt from professional tax. Additionally, individuals below 18 years and above 60 years are not required to pay professional tax.
What is the minimum professional tax amount in Nagaland?
Professionals earning between ₹4,000 and ₹5,000 per month must pay a minimum professional tax of ₹35 per month.
Reference