Professional Tax :

 The employer is required to deduct professional tax in the manner laid down in prescribed income slabs under the Sikkim Professional Tax Act, 2006 systematically from the monthly salaries of employees. Those with a gross monthly salary of up to ₹20,000 are fully exempt from the tax while the highest category is those with an income of over ₹40,000, who are subject to a flat deduction of ₹200.00 per month maximum. These liabilities are calculated and withheld on a monthly payroll basis but the associated electronic returns are prepared and filed on a quarterly basis with the first filing cycle beginning on April 30th. Employers need to maintain timely registration to ensure clean corporate compliance and protect the business from statutory penalties. Delay will attract a registration fine of ₹5 per day and an automatic 1.25% monthly interest penalty on any unpaid tax amounts.