Online Professional Tax Registration - An Overview
Professional tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers, and doctors.
Legal Registration provides assistance with
Data Check
We do a thorough check of the files you send for professional tax registration
Vendor Connect
We will appoint an affiliate to process your application
Recepit Of Tax Number
The TIN will be issued within 15 days of the professional tax registration
Professional Tax Applicability
Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same
Professional Tax Variation With Each State
Professional tax payment will always have distinct rates that keep varying from state to state. The state governments which are levying state tax are West Bengal, Maharashtra, Karnataka, Kerala, Assam, Madhya Pradesh, Orissa, Tripura, Meghalaya, and Gujarat.n
Professional Tax Self Employed
Any professional who gets a regular income on a monthly basis will have to pay the professional tax. By the term professional, we imply people working in specialized fields like accountancy, media, medicine, information technology, media, etc.
Professionals offering freelance services also need to pay professional tax using a special type of form. They can fill the form and get a registration number first. Then, using that number, they can pay their taxes in the corresponding banks.
In certain states in India, specifically , Maharashtra Profession Tax Act amended from 1.4.2018, Now a Limited Liability Partnership and each partner of LLP shall be liable to pay PT of Rs. 2,500/- per annum.
Exemption From Professional Tax Payment
The following individuals are exempted to pay professional tax:
- Parents of children with a permanent disability or mental disability.
- Members of the armed forces, including members of auxiliary forces or reservists, serving in the state.
- Individuals, over 65 years of age.
- An individual who is physically challenged (also visually challenged).
- Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
- Parents or guardians of individuals who are mentally challenged
- Badli workers in the textile industry.
Why pay Professional Taxes? Benefits
Here are the reasons why one should never miss a professional tax payment
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IT IS A JUDICIAL REQUIREMENT
As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.
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TO AVOID PAYING PENALTIES
Failure to professional tax registration results in huge penalties that keep on increasing over time.
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EASY TO COMPLY
When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.
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DEDUCTIONS
Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.
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THE STATE GOVERNMENT TAX
The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.
Documents required for Online Professional Tax Registration
Here is a list of documents required to register for professional tax:
- Certificate of Incorporation, including MOA & AOA / LLP Agreement.
- PAN card of Company/LLP which is attested by the company director
- Place of business proof along with a NOC from the owner of the premises
- Bank account of the company including bank statement and cancelled cheque.
- Passport size photographs, address and identity proof from all the directors
- Board resolution or in other words, the statement of consent by the partners.
- Shop and establishment certificate
- Salary register and attendance register