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.