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Professional Tax (PT) Registration

Professional tax is usually a calculated as per monthly Salary Slab of the professional. It is deducted from his income on monthly basis. Some of the state governments that have levied professional tax are Andhra Pradesh, Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. In case of salaried employees and wage earners, Employer is liable to deduct professional tax and required to be paid to State Government. 

It is a tax levied on professions and trades in India. It is a state-level tax and has to be paid compulsorily by eligible member of staff employed in companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government authority.Professional tax is usually a calculated as per monthly Salary Slab of the professional. It is deducted from his income on monthly basis.Employer is liable to deduct professional tax and required to be paid. 

PROFESSION TAX (PT) REGISTRATION

 

Basics

 

It is a tax levied on professions and trades in India. It is a state-level tax and has to be paid compulsorily by eligible member of staff employed in companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government authority.

 

Professional tax is usually a calculated as per monthly Salary Slab of the professional. It is deducted from his income on monthly basis. Some of the state governments that have levied professional tax are Andhra Pradesh, Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. In case of salaried employees and wage earners, Employer is liable to deduct professional tax and required to be paid to State Government. In case of other class of Individuals, this tax is liable to be paid by the person on his own.

 

We will assess your business and prepare the documentation for professional tax application with the concerned State Government. The signed professional tax application will be submitted to the relevant department in the same city or town. On scrutiny of the application, Government will allot professional tax registration number.

 

Usually it takes around 2 - 3 working days for Profession Tax Registration subject to valid compliance from applicant side.

 

Advantages

 

  1. Statutory Requirement: Employers in certain states shall obtain professional tax registration and deduct and pay service tax on behalf of employees.

 

  1. Avoid Penalty: Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time. Hence Penalty can be avoided by opting for Profession Tax Registration.

 

  1. Easy Compliance: Compliance with professional tax regulation is easy. Professional tax registration can be obtained easily and compliance maintained easily.

Documents


Passport Photo

Passport Photo of all parties


PAN Card

PAN Card of all parties


Aadhaar Card

Aadhaar Card of all parties


Other Documents

Other documents will be intimated through e-mail.

FAQ

Profession Tax is a tax which is levied by the state on the income earned by way of profession, trade or employment.The profession tax is to be deducted by the employer from salary and wages and the employer is liable to pay it to the state government.

In case of professional tax, Income Tax amount is deducted when payment is made from salary by prescribed percentage according to income tax. TDS amount is like advanced Tax. Professional tax is collected by state government.

The following individuals are exempted to pay Professional Tax: Parents of children with permanent disability or mental disability. Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950 and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.

Every business establishment who is an employer is liable to pay Professional Tax on annual basis and every employee whose income is more than specified amount is liable to pay professional tax which differs from State to State.

The registration is mandatory for business whether they employ any people in employment or not. For GST, one can file nil return even if there is no business.

In case of professional tax, Income Tax amount is deducted when payment is made from salary by prescribed percentage according to income tax. TDS amount is like advanced Tax. Professional tax is collected by state government.

PT can be claimed as deduction u/s 16(iii) to the extent it is paid in a FY irrespective of the period for which it is paid. So in this case, you can claim this deduction for next year.

If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).

A maximum of ₹2,500 a year is levied as professional tax on establishments and persons earning more than ₹15,000 a month. Professional tax is among the only two taxes (the other being Karnataka Sales Tax) that the State government administers, after the other taxes were subsumed in the GST regime.