{"id":1843,"date":"2019-12-31T13:22:08","date_gmt":"2019-12-31T13:22:08","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1843"},"modified":"2021-06-04T16:14:27","modified_gmt":"2021-06-04T10:44:27","slug":"apply-for-professional-tax-registration-online","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/","title":{"rendered":"How to apply for Professional Tax Registration in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Professional Tax is the tax\nimplied by the State government on all the types of trade and professions in\nIndia. Under&nbsp;<strong>Clause (2) of Article 276<\/strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Sixtieth_Amendment_of_the_Constitution_of_India\" target=\"_blank\" rel=\"noreferrer noopener\"><sup>[1]<\/sup><\/a>&nbsp;of the Constitution of India, the\nProfessional tax is deducted by the employer from the salaries of the employee\nevery month. This tax is remitted to the respective state government under\nwhich the maximum amount that can be levied annually in INR 2500.<\/p>\n\n\n\n<p>We all know that being a salaried individual; we need to pay income tax on the income we earn. But, do you know that apart from the income tax, there is a tax called \u201cProfessional tax\u201d which is being imposed by the respective state government on account of infrastructure it provides you. &nbsp;Either you are an employer or a professional practicing your occupation, you need to pay the Professional tax if the income exceeds the monetary threshold. In this blog, we will let you know that who is eligible for paying the Professional Tax and what is the entire procedure for applying for the&nbsp;<a href=\"https:\/\/corpbiz.io\/professional-tax-registration\"><strong>Professional Tax Registration<\/strong><\/a> in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_is_the_Applicability_of_Profession_Tax\" >What is the\nApplicability of Profession Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#Benefits_of_Professional_Tax_Registration_in_India\" >Benefits of\nProfessional Tax Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_are_the_states_in_which_Professional_Tax_is_imposed\" >What are the states in which Professional Tax is imposed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_is_the_rate_of_Professional_Tax_for_different_States_and_self-employed_Individuals\" >What is the rate of Professional Tax for different States and self-employed\nIndividuals?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#Who_needs_to_pay_the_Professional_Tax\" >Who needs to pay the Professional Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#Who_are_all_exempted_from_paying_the_Professional_Tax\" >Who are all exempted from paying the Professional Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_are_the_advantages_of_paying_the_Professional_Tax\" >What are the advantages of paying the Professional Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#Difference_between_Professional_Tax_Registration_Certificate_PTRC_and_Professional_Tax_Enrollment_Certificate_PTEC\" >Difference between Professional Tax Registration Certificate (PTRC) and\nProfessional Tax Enrollment Certificate (PTEC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_are_the_Documents_required_for_the_Professional_Tax_Registration\" >What are the Documents required for the Professional Tax Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_is_the_procedure_involved_in_the_Professional_Tax_Registration\" >What is the procedure involved in the Professional Tax Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#Can_we_pay_the_Professional_Tax_in_a_Lump_sum\" >Can we pay the Professional Tax in a Lump sum?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#What_is_the_penalty_for_furnishing_wrong_information\" >What is the penalty for furnishing wrong information?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/corpbiz.io\/learning\/apply-for-professional-tax-registration-online\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Applicability_of_Profession_Tax\"><\/span>What is the\nApplicability of Profession Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Company\/Firms\/LLP<\/strong><em><strong> <\/strong><\/em><strong>\u2013<\/strong><\/li><\/ul>\n\n\n\n<p>&nbsp;Company, firms, Corporation,\nLLP, Associations, HUF, societies, clubs is taxable entity.<\/p>\n\n\n\n<ul><li><strong>Professionals(Individuals)-<\/strong><\/li><\/ul>\n\n\n\n<p>Notaries, Legal Practitioners like solicitors,\nmedical representatives like\nnurses and dentist,\ndoctors,\nmedical consultants, and such\nother professionals like tax consultants, management consultants, CS, CA, Insurance agents, surveyors, architects , engineers and\ncontractors are considered as professional individuals who need to pay professional\ntax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Professional_Tax_Registration_in_India\"><\/span>Benefits of\nProfessional Tax Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benefits of paying professional tax are:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Be compliant- <\/h3>\n\n\n\n<ul><li>Paying professional tax keeps the company legally\ncompliant with the state laws and keep it actively running.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Safeguard from paying\npenalties-<\/h3>\n\n\n\n<p>Both the employer and\nemployee are secured from paying\nthe heavy penalties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Nominal Payables<\/h3>\n\n\n\n<p>As the taxes deducted in accordance with the\nstate government are nominal and they are prepared in accordance with the salary range, hence the taxpayers burden is nominal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_states_in_which_Professional_Tax_is_imposed\"><\/span>What are the states in which Professional Tax is imposed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Professional Tax is not imposed in\nall the states of India. However, there are some states in which this tax is\nlevied; the name of these states is listed below:<\/p>\n\n\n\n<ul><li>Karnataka<\/li><li>Bihar<\/li><li>West Bengal<\/li><li>Andhra Pradesh<\/li><li>Telangana<\/li><li>Maharashtra<\/li><li>Tamilnadu<\/li><li>Gujarat<\/li><li>Assam<\/li><li>Kerala<\/li><li>Meghalaya<\/li><li>Odisha<\/li><li>Tripura<\/li><li>Madhya Pradesh,<\/li><li>Sikkim<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_rate_of_Professional_Tax_for_different_States_and_self-employed_Individuals\"><\/span>What is the rate of Professional Tax for different States and self-employed\nIndividuals?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">For the Different States:<\/h3>\n\n\n\n<p>The Professional Tax varies from state to state, and the respective state governments decide the tax rate slab. For Freelancers and self-employed individuals <\/p>\n\n\n\n<p>Many of us think that being a self-employed individual; we do not need to pay any taxes. But, any individual who is working independently or working as a freelancer has to pay the Professional Tax. A person who is practicing professionals such as Charted Accountant, Company Secretary, lawyer, or Doctor etc. are eligible for paying the professional tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_needs_to_pay_the_Professional_Tax\"><\/span>Who needs to pay the Professional Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Below is the categorisation of the individuals who need to pay the Professional Tax:<\/strong><\/p>\n\n\n\n<ul><li>Individuals involved in government and private jobs.<\/li><li>Businessmen and persons engaged in trade activities.<\/li><li>Individuals are practising their professions.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_are_all_exempted_from_paying_the_Professional_Tax\"><\/span>Who are all exempted from paying the Professional Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The individuals who are exempted from paying the Professional tax are listed below:<\/strong><\/p>\n\n\n\n<ul><li>Parents of children with a permanent disability or mental disability.<\/li><li>Members of armed forces as defined in&nbsp; the<\/li><li>Army Act, 1950<\/li><li>Air Force Act, 1950<\/li><li>Navy Act, 1957<\/li><li>Members of the armed forces including the members of auxiliary forces or reservists serving in the state.<\/li><li>Individuals who are physically challenged.<\/li><li>Individuals above 65 years of age.<\/li><li>Women are working under the Mahila Pradhan Khatriya Bachat Yojana or Director of Small Savings.<\/li><li>Badli workers are working in the textile industry.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_paying_the_Professional_Tax\"><\/span>What are the advantages of paying the Professional Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Following are the reasons why one should never miss professional tax liability:<\/strong><\/p>\n\n\n\n<ul><li>Payment of professional tax is a statutory requirement and hence to avoid any penalty or prosecution, self-employed person and employer have to pay the professional tax as per the rates of its concerned state without any delay.<\/li><li>Professional tax is very simple to comply with. Regulations governing professional tax impose minimal restrictions and are easy to get registered with simplified annual\/monthly compliances.<\/li><li>The deduction can be claimed of earlier paid professional tax on salary.<\/li><li>Professional tax is a state tax; therefore, it authorises state government or local tax authorities to collect professional tax deducted on professional fees, business income, and salary.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_Professional_Tax_Registration_Certificate_PTRC_and_Professional_Tax_Enrollment_Certificate_PTEC\"><\/span>Difference between Professional Tax Registration Certificate (PTRC) and\nProfessional Tax Enrollment Certificate (PTEC)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Below is a comparison chart between the PTRC and PTEC \u2013<\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Professional\n  Tax Registration Certificate<\/strong>\n  <\/td><td>\n  <strong>Professional\n  Tax Enrollment Certificate<\/strong>\n  <\/td><\/tr><tr><td>\n  PTRC\n  is required by those professionals or employers or those entities that employ\n  individuals in their organisations and pay them wages and salary.\n  <\/td><td>\n  Whereas,\n  Professional Tax enrollment certificate is required by the self-employed\n  individuals to pay the company\u2019s and director\u2019s professional tax.\n  <\/td><\/tr><tr><td>\n  PRTC\n  is mandatory for the individuals\/entities who are working under any\n  organisation.\n  <\/td><td>\n  Whereas\n  PTEC is required by the individuals who are self-employed or own a trade or\n  business.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_required_for_the_Professional_Tax_Registration\"><\/span>What are the Documents required for the Professional Tax Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Below is the list of Documents required for the Professional Tax Registration \u2013<\/strong><\/p>\n\n\n\n<ul><li>Incorporation Certificate including MOA (Memorandum of Association) and AOA (Article of Association) and LLP (Limited Liability Partnership&nbsp;Agreement).<\/li><li>PAN Card of the Company<\/li><li>PAN Card of the partners, proprietors and Directors.<\/li><li><a href=\"https:\/\/corpbiz.io\/shop-establishment-license\"><strong>Shop and Establishment Certificate<\/strong><\/a><\/li><li>Financial Statements of the establishments.<\/li><li>Address proof of the Establishment.<\/li><li>Passport size photographs of the partners, proprietors and Directors.<\/li><li>Salary details of employees.<\/li><li>Proof of the Constitution of Business.<\/li><li>PAN and PTEC details<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_procedure_involved_in_the_Professional_Tax_Registration\"><\/span>What is the procedure involved in the Professional Tax Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The Procedure for applying for the Professional Tax Registration online is given below:<\/strong><\/p>\n\n\n\n<ul><li>Visit the CTD portal (Commercial Taxes Department) of your respective state government:<\/li><li>The applicant will log in to the website of the CTD portal and fill in the required details.<\/li><\/ul>\n\n\n\n<ul><li>The applicant will fill the application form and attach the necessary documents.<\/li><li>The tax department authority will scrutiny the application and issues a registration certificate in case there is no discrepancy.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_we_pay_the_Professional_Tax_in_a_Lump_sum\"><\/span>Can we pay the Professional Tax in a Lump sum?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We always enjoy a benefit if we\npay the required amount in a lump sum rather than paying in installments. This\nconcept is called&nbsp;<strong>\u201cComposition Scheme\u201d<\/strong>&nbsp;which is being followed\nin many states.<\/p>\n\n\n\n<p>To simplify this, we can say that\nif you are liable to pay INR 2500 as professional tax annually, then you can\nopt to pay INR 10000 as the professional tax in a lump sum for five years. This\nis turn will discharge your liability in and save your INR 2500.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_penalty_for_furnishing_wrong_information\"><\/span>What is the penalty for furnishing wrong information?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>As per the Section 5(6), any applicant who publishes wrong information in the application for the Registration Certificate or Enrollment Certificate is liable to pay the professional tax fee three times the tax payable under the Professional Tax Act.<\/li><li>Also, there is a penalty of 2 % per month for delay in making the payment, and in case there is a further delay in the non-payment, then it can attract a 10% additional penalty.<\/li><li>In case of late return filing, certain states have imposed a fine of INR 300.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take Away<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To conclude, one can say that despite paying income tax, there is another tax that we need to pay, which is termed as \u201cProfessional Tax\u201d. But many of us are even unaware of this term because the breakup of our salary does not mention this term. The procedure for obtaining the Professional Tax certificate is entirely online. In case you want any assistance related to Professional Tax Registration, you can contact the team of&nbsp;<strong><a href=\"https:\/\/corpbiz.io\/\">Corpbiz<\/a><\/strong>&nbsp;for the registration procedure and after registration compliances.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/professional-tax-rates-for-a-financial-year-2019-20-in-india\/\">Professional Tax Rates for a financial year 2019-20 in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional Tax is the tax implied by the State government on all the types of trade and professions in India. Under&nbsp;Clause (2) of Article 276[1]&nbsp;of the Constitution of India, the Professional tax is deducted by the employer from the salaries of the employee every month. This tax is remitted to the respective state government under [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":1847,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[22],"tags":[24],"acf":{"service_id":"303"},"authorName":"Shailza Sharma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190927-WA0001-150x150-22.jpg","authorDescription":"Miss Shailza Sharma, BA. LLB graduate from Himachal Pradesh University. She holds an experience of 2.5 years in various Legal companies and organizations.","postViews":11359,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1843"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1843"}],"version-history":[{"count":27,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1843\/revisions"}],"predecessor-version":[{"id":31501,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1843\/revisions\/31501"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1847"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}