Professional tax in Sikkim: Tax slab, online payment, and more

Individuals earning income in Sikkim must pay professional tax to the state’s sales tax department. This tax applies to salaried employees, self-employed professionals, and business owners. The revenue collected supports the state’s development initiatives.

This guide covers key aspects of professional tax in Sikkim, including eligibility, tax slabs, registration, and payment deadlines, ensuring compliance with the law.

Professional tax in Sikkim

Professional tax in Sikkim is governed by the Sikkim State Tax on Professions, Trades, Callings, and Employments Act, 2006. The Sikkim Sales Tax Department is responsible for collecting this tax. Every individual and business earning income above the specified limit must pay professional tax as per the Act.

Applicability of professional tax in Sikkim

Professional tax applies to individuals and entities residing or operating in Sikkim, including:

• Salaried employees - Individuals working in the private and government sectors.
• Self-employed professionals - Tax consultants, chartered accountants, engineers, and similar experts.
• Medical and legal professionals - Doctors, dentists, lawyers, and other practitioners.
• Real estate agents and contractors - Brokers, building contractors, and other professionals in the sector.
• Business owners and traders - Individuals engaged in any trade, business, or professional services.

Sikkim professional tax slab rates

Professional tax rates for salaried employees in Sikkim vary based on their monthly gross salary.

Professional tax rates for all categories of profession in Sikkim

For tax rates applicable to other professions, refer to the table below:

For additional information on tax rates for other professions in Sikkim, refer to this PDF.

Sikkim professional tax payment process

To ease professional tax payment in the state, the government has introduced online tax payment services. Follow the below steps to successfully remit your professional tax online:

1. Visit the Sikkim Commercial Taxes Department’s official e-services portal at: http://eservices.sikkimtax.gov.in/index.php/site/login.​
2. Log into the portal using your existing credentials and navigate to the professional tax section.
3. Select the option for “professional tax payment” in the newly opened page and enter payment details, such as the assessment year for which you’re making the payment, tax amount, and your establishment details.
4. Carefully review all entered information for accuracy before proceeding.
5. Click “Submit” and choose your preferred payment method, eg: net banking, credit/debit card, and complete the transaction.
6. After successful payment, download and save the acknowledgment receipt for your records.

Due date to pay professional tax in Sikkim

Employers registered under the Act must remit professional tax quarterly. The due dates for payment are:

Professional tax late payment penalty in Sikkim

If a registered employer in Sikkim fails to pay their professional tax on time without a valid reason, the authorities can impose a fine of Rs. 15 for each day the payment is delayed. Non-payment can incur a penalty of up to Rs. 1,000.

Exemptions from professional tax in Sikkim

The following are the individuals are exempt from paying professional tax in the state:

• Senior citizens above 65 years of age
• Individuals with permanent physical disabilities
• Personnel governed by the Navy Act, 1957, Army Act, 1950, or Air Force Act, 1950.

Key takeaways

Paying professional tax in Sikkim is a legal obligation for individuals and businesses earning an income. The revenue generated supports various developmental and welfare initiatives within the state. Employers must ensure timely registration and tax payments to avoid penalties. By complying with the Sikkim State Tax on Professions, Trades, Callings, and Employments Act, 2006, taxpayers play a vital role in the state's economic growth and overall progress.

Frequently asked questions