Maharashtra Profession Tax-Exemptions added!

The Maharashtra Profession Tax is a state-level tax levied on individuals earning income through employment, profession, trade, or calling within the state. While this tax is a significant source of revenue for the Maharashtra government, certain exemptions are available to provide relief to specific groups of individuals.

Section 27A of Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (Mah. XVI of 1975) contains a list of persons exempted from PTEC registration and payment. As per clause (h) of this section, the armed members serving various states are exempted. There is a list of various forces for which this exemption is available. This list is amended on 31^st July, 2024.

Let's understand the changes!

Old clause (h) of section 27A

“(h) The armed members of Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 (66 of 1949) applies and the armed members of the Border Security Force, to whom the Border Security Force Act, 1968 (47 of 1968) applies and serving in the State.

Amended clause (h) of section 27A

"(h) The armed members, serving in the State, of -

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• ‍‍The Central Reserve Police Force constituted under the Central Reserve Police Force Act, 1949 (66 of 1949);
• The Border Security Force constituted under the Border Security Force Act, 1968 (47 of 1968);
• The Central Industrial Security Force constituted under the Central Industrial Security Force Act, 1968 (50 of 1968);
• The National Security Guard constituted under the National Security Guard Act, 1986 (47 of 1986);
• The Indo Tibetan Border Police Force constituted under the Indo Tibetan Border Police Act, 1992 (35 of 1992);
• The Assam Rifles constituted under the Assam Rifles Act, 2006 (47 of 2006); and
• The Sashastra Seema Bal constituted under the Sashastra Seema Bal Act, 2007 (53 of 2007)."

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Amended Section 27A of MSTPTCE Act, 1975

Nothing contained in section 3 and other provisions of this Act shall apply to-

(a) The members of the Forces as defined in the Army Act, 1950 or the Air Force Act, 1950, and the members of the Indian Navy as defined in the Navy Act, 1957 serving in any part of the State and drawing pay and allowances as Army or Air Force or Navy, as the case may be, including the members of auxiliary forces or reservists, or reserve and auxiliary services serving in any part of the State and drawing pay and allowances as such auxiliary forces or reservists, or reserve and auxiliary services, as the case may be, under the budgetary allocations of the Defence Services;

Explanation- It is hereby declared for the removal of doubts that nothing in this clause shall apply or shall be taken to have applied during any period starting on or after the 1st May, 2000 to persons drawing pay and allowances from the establishments of the Defence Ordnance Factories situated in any part of the State.

(b) The badli workers in the textile industry.]

(c) Any person suffering from a permanent physical disability (including blindness), being a permanent physical disability specified in the rules made on this behalf by the State Government, which is certified by a physician, a surgeon, or an oculist, as the case may be, working in a Government Hospital and which has the effect of reducing considerably such individual's capacity for normal work or engaging in gainful employment or occupations:

Provided that such individual or, as the case may be, the employer produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims a deduction under this sub-section:

Provided further that the requirement of producing the certificate from a physician, a surgeon, or an oculist, as the case may be, working in a Government Hospital shall not apply to an individual who has already produced a certificate before the prescribed authority under the provisions of this sub-section as they stood immediately before the 1st day of April 1995.

Explanation- For this sub-section, the expression "Government Hospital" includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants.

(d) Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana of the Directorate of Small Savings.

(e) Any person with Intellectual and Development Disabilities (Mental Retardation) specified in the rules made on this behalf, which is certified by a psychiatrist working in a Government Hospital and which has the effect of reducing considerably such individual's capacity for normal work or engaging in gainful employment or occupation and parents or guardian of such person:

Provided that, such individual or, as the case may be, the employer produces the aforesaid certificate before the prescribed authority in respect of the first assessment year for which he claims a deduction under this clause.

Explanation- For this clause, the expression “Government Hospital” shall have the same meaning as assigned to it in clause (c);

(f) The person who has completed the age of sixty-five years.

(g) Parents or guardians of a child suffering from a physical disability as specified in clause (c);]

(h) The armed members, serving in the State, of, -

• The Central Reserve Police Force constituted under the Central Reserve Police Force Act, 1949 (66 of 1949);
• The Border Security Force constituted under the Border Security Force Act, 1968 (47 of 1968);
• The Central Industrial Security Force constituted under the Central Industrial Security Force Act, 1968 (50 of 1968);
• The National Security Guard constituted under the National Security Guard Act, 1986 (47 of 1986);
• The Indo Tibetan Border Police Force constituted under the Indo Tibetan Border Police Act, 1992 (35 of 1992);
• The Assam Rifles constituted under the Assam Rifles Act, 2006 (47 of 2006); and
• The Sashastra Seema Bal constituted under the Sashastra Seema Bal Act, 2007 (53 of 2007).

Key changes

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The armed members list is now made more specific. Subclause (iii) to (vii) of clause (h) are newly added forces to whom this exemption is applicable. They are as follows:

• The Central Industrial Security Force was constituted under the Central Industrial Security Force Act, 1968 (50 of 1968)
• The National Security Guard was constituted under the National Security Guard Act, 1986 (47 of 1986)
• The Indo Tibetan Border Police Force constituted under the Indo Tibetan Border Police Act, 1992 (35 of 1992)
• The Assam Rifles constituted under the Assam Rifles Act, 2006 (47 of 2006)
• The Sashastra Seema Bal was constituted under the Sashastra Seema Bal Act, 2007 (53 of 2007).

Conclusion

In conclusion, the recent amendments to Section 27A of the Maharashtra State Tax on Professions, Trades, Callings, and Employments Act, 1975, mark a significant step in broadening the scope of professional tax exemptions for armed forces personnel serving in the state. By explicitly including additional forces such as the CISF, NSG, ITBP, Assam Rifles, and SSB, the government has ensured that a larger segment of those who serve and protect the nation are relieved from the burden of this tax. These changes not only recognize the unique role of these forces but also reflect the state's commitment to supporting those in uniform.

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