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Professional Tax Registration

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Professional Tax?

Professional tax is a state tax and is imposed on income earned by professionals. Professional tax is similar to income tax except for the fact that it is collected by the State government. It was first introduced in 1949 with a ceiling of Rs. 250.

Professional Tax Registration

Any person is engaged in any profession or trade he needs a professional tax registration. The professional tax needs to be compulsorily be paid by every member of the staff employed in the private companies. The business owner has the sole responsibility to deduct the professional taxes from the salaries of the employees and pay the amount to the said government department. In case of other class of individuals, this tax is to be paid by the person himself.

Professional tax registration application has to be made to the respective state department within a span of 30 days of employment. Delay in obtaining the registration certificate incurs a Rs. Five penalties per day. In case there is late or non-payment of the professional tax, then the penalty is 10 % of the amount of tax. Rs. 300 is levied if there is a late filing of returns.

The professional tax depends on the gross income of an individual. A monthly deduction is made from the income of the professional.

Who needs a professional tax registration?

The following people need a professional tax registration-

  • Self-employed professional
  • Any business entity which is employing one or more employees

Exemptions for paying professional tax

The following individuals are exempted from paying Professional Tax:

  • Parents of children who have a permanent disability or mental disability.
  • Members of the forces as defined under the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including the members of auxiliary forces.
  • Individuals above the age of 65.
  • Individual having a permanent physical disability.
  • Women engaged as an agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings Scheme.
  • Parents or guardians of individuals who are suffering from a mental disability.
  • Badli workers in the textile industry.

Why have a professional tax registration

  • Professional tax registration is a statutory requirement. Employers in some stated have to mandatorily obtain the registration, deduct and pay the tax on behalf of the employees.
  • If someone fails to have the registration, then it would lead to a penalty.
  • Compliance for professional tax regulation is an easy procedure. It can be easily obtained and maintained.
  • If the tax is actually paid by the employee, then he can claim deductions in that year.
  • Professional tax can be levied by the State government. It should not exceed Rs. 2500 per annum.

Time Frame

  • Post Enquiry
  • Send documents- 12 days
  • Document submission- 20 days
  • Government official will process the application
  • Registration of professional tax

Documents required for Registration

Following documents are required to be submitted-

  • The address proof of the establishment
  • Address proof of partners, proprietor or directors as applicable
  • PAN of partners, proprietors and directors as applicable
  • Photo of partners, proprietors and directors as applicable
  • Salary details of the employees
  • Financial statements of the establishment
  • Certificate of incorporation and address proof in case of a company

How can LawyerINC help you get a professional tax registration?

  • Connect with our team
  • Get a callback
  • Expert Consultation
  • Submit the required documents
  • Filing of Application
  • Follow-up with the authorities.
  • Track Progress
  • End to end service

*Any fee, stamp duty, and miscellaneous charges shall be payable extra.

LawyerINC will assist you in getting registered under professional tax without leaving the comfort of your house. We don’t take any charges/tax on government fees. Do contact us in case of any query related to professional tax registration and much more.

To avail any of our services, kindly establish contact by posting a query at our site, LawyerINC.

Frequently Asked Questions

  • 1. What is a professional tax and when is a professional tax levied?

    A professional tax is a state-imposed tax which is imposed on income which is earned through a profession, trade, calling or employment. This tax depends on the income of the individual who may be self-employed or might be working as an employee. Currently, the maximum tax fixed is restricted to Rs. 2500/-.

  • 2. What is the enrolment certificate of professional tax, and what is a registration certificate?

    Every employer has the duty to deduct taxes from the salary of their employees, in case the payment made to the government exceeds a certain limit fixed by the respective state. That entity needs to obtain a registration certificate. When the employee is employed in two professions, and he is getting a salary exceeding Rs. 5000 and the employer is not deducting the tax then, in that case, the individual needs to get the enrolment certificate from the concerned authority.

  • 3. In which state is Professional tax imposed in India?

    Currently, the professional tax is imposed in Karnataka, Bihar West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

  • What is the procedure of Patent registration?
  • 4. Who has the responsibility for deducting the professional tax and deposit the same with Government?

    In the case of self-employed individuals, the tax has to be paid by the individual himself. And in the case of employed individuals, the liability of paying the professional tax is on the employer.

  • 5. Can the payment of professional tax be made in a lump sum?

    Certain states have a concept of composition scheme. For instance, in Maharashtra, the government introduced a composition scheme through which any person is liable to pay the government at the rate of Rs. 2500 then he can make a lump sum payment in advance of Rs 10,000, and his liability will be discharged for a period of 5 years.

  • 6. What are the benefits of taking services from LawyerINC?

    At LawyerINC, we have an excellent blend of experts to help you get a professional tax registration hassle free. We are committed to offer our services to various entities at a reasonable price. Our focus is to provide quality services to our clients.

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