Professional tax is not applicable to residents of the state of Meghalaya, who earn less than Rs 1.8 lakh per year. The proposed change to the Meghalaya Professions, Trades, Callings, and Employments Taxation Act, 1947, will take effect after the Cabinet approves it.
Conrad K. Sangma, the chief minister, told reporters following a Cabinet meeting on Monday that the administration resolved not to charge anyone with an annual income of less than Rs. 1.8 lakh.
Only those making Rs. 50,000 or less in annual income were exempt from professional taxation in the past. According to Sangma, the government reduced the number of professional tax slabs from 12 to 4.
Decriminalizing small offences is another decision we made. We eliminated a clause that stipulated that failing to pay taxes could result in three years in prison. The CM noted that the fine now required payment of four times what was initially owed.
A professional tax of Rs 400 must be paid annually by individuals with an annual income between Rs 1.8 lakh and Rs 3 lakh. According to the chief minister, it is Rs 1,000 for the income group making between Rs 3 lakh and Rs 5 lakh, Rs 1,500 for the income group making between Rs 5 lakh and Rs 7.5 lakh, and Rs 2,500 for those making beyond Rs 7.5 lakh.
He stated that late payers will be assessed interest at a rate of 12% annually. He further stated that the alteration would take effect on April 1, 2022.
“We have also agreed that everyone must register, which is necessary. This will depend on the schedule and non-schedule places. The Khasi Hills Autonomous District Council will handle it in the schedule areas, and the Taxation Department would handle it in the non-scheduled areas, according to Sangma.
