Professional Tax Registration
Professional Tax Registration
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Professional tax needs to be deducted from the salary or wages paid amount.Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice.
Professional Tax is a tax levied by the state on the income earned by employees on rendering their specific services.Just like the income tax, the professional tax is linked to the income slabs. It is deducted at the source by the employer. It is a nominal tax and never exceeds a few hundred rupees a month. The maximum amount of Professional Tax that any state can impose in India is ₹2500.The professional tax applies to employees of almost all industries. It’s also applicable to professionals like doctors, chartered accountants (CAs), consultants, traders, and other self-employed individuals.The employer is responsible for registering, deducting, and paying the professional tax to the government regularly for employees and wage earners. Failure to comply has consequences like fines and penal tax.Every state has its own laws and regulation to govern professional tax of that particular state.
Documents Required For Professional Tax
- Acknowledgement of the online form, along with the print out of the digital form submitted
- Copy of PAN Card
- Residence proof of Partner, Director, Proprietor
- Proof of Constitution of business like Certificate of Incorporation
- Blank Cancelled Cheque
- Address proof of Business place
- Establishment Certificate
- PAN& PTEC details
FAQ
Frequently Asked Questions
Who needs to pay the Professional Tax
A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax online.
What is the procedure for Professional Tax Registration.
Who are exempted from Proessional Tax
What is the last date for the payment of Tax
What if the places of business of a professional are spread over multiple states ?
What happens if Professional did not pay professional tax ?
Is there any time limit for compulsory enrolment?
What is the maximum Professional tax to be collected ?
Who has to collect Professional Tax?
