In Maharashtra, Professional Tax is applicable to all individuals earning an income, including salaried employees, self-employed professionals, and businesses. However, whether it applies to a stipend depends on how the stipend is structured.
- If the stipend is considered as "salary" or "wages" for services rendered (for example, in internships or training programs where the recipient provides services to the employer), it is likely that professional tax will apply.
- If the stipend is purely educational in nature, such as an allowance given to students without the expectation of any services in return, it may not attract professional tax.
Ultimately, the applicability depends on the nature of the stipend and how it is defined in the context of the employer-employee relationship.
Example:
In the case of trainees or apprentices, if the stipend is paid for services similar to that of a regular employee, Maharashtra Professional Tax is typically applicable.
Professional Tax Rates in Maharashtra:
- For monthly salaries up to ₹7,500 (women), no tax.
- For monthly salaries up to ₹10,000 (men), no tax.
- For salaries between ₹10,001 and ₹15,000, the tax is ₹175 per month.
- For salaries above ₹15,000, the tax is ₹200 per month, except for ₹300 in February.
It is advisable to review the exact terms of the stipend and consult the employer or tax advisor to confirm its professional tax applicability.
Comments