Question
What is the penalty and interest for late professional tax payment?
Answer
Bottom line: It varies by state, but Maharashtra charges interest of about 1.25% a month plus a penalty on the unpaid tax.
1. Maharashtra example
Interest of 1.25% per month on the overdue tax, a penalty of around 10% for non-payment, and separate penalties for late enrolment or late returns.
2. Other states
Kerala, for instance, charges about 1% a month. Always check your own state's Act.
3. Register on time
Delayed enrolment attracts its own daily penalty.
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This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.