{"id":21855,"date":"2020-12-14T12:23:47","date_gmt":"2020-12-14T06:53:47","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21855"},"modified":"2020-12-14T12:23:49","modified_gmt":"2020-12-14T06:53:49","slug":"professional-tax-registration-certificate-how-it-differs-from-tds","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/professional-tax-registration-certificate-how-it-differs-from-tds\/","title":{"rendered":"Professional Tax Registration Certificate- How it differs from TDS?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Professional tax is one which is levied on all professions, trade and forms of employment. The tax is not restricted itself to professionals alone as it is collected based on an individual&#8217;s income who must have <a href=\"https:\/\/corpbiz.io\/professional-tax-registration\"><strong>professional tax registration<\/strong><\/a> certificate. Therefore, employees, and individuals who own businesses and professionals are taxed under this term if their income exceeds the threshold.<\/p>\n\n\n\n<p>According to Article 246 of the Indian\nConstitution, the Parliament is the only body which can alter laws related to\ntax on profits. A professional tax, however, is levied by the State\nGovernments; hence, they have the right to make laws and amendments related to\nthose concerns. The article 276 of Indian Constitution deals with the taxes\nwhich are applicable on employment, trade, &amp; professional based occupation.<\/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\/professional-tax-registration-certificate-how-it-differs-from-tds\/#What_is_the_Difference_between_Tax_Deduction_at_Source_TDS_and_Professional_Tax_deduction\" >What is the Difference between Tax Deduction at Source (TDS)\nand Professional Tax deduction?<\/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\/professional-tax-registration-certificate-how-it-differs-from-tds\/#Who_Collects_the_Professional_Tax\" >Who Collects the Professional Tax?<\/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\/professional-tax-registration-certificate-how-it-differs-from-tds\/#Professional_Tax_Registration_Certificate\" >Professional Tax Registration Certificate<\/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\/professional-tax-registration-certificate-how-it-differs-from-tds\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Difference_between_Tax_Deduction_at_Source_TDS_and_Professional_Tax_deduction\"><\/span>What is the Difference between Tax Deduction at Source (TDS)\nand Professional Tax deduction?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One has to understand a difference between\n(TDS) Tax Deduction at source and professional tax deduction. Both the terms\nare often mistakenly used in place of one another. However, the tax deduction\nat source is the amount cut by the employer based on the predetermined TDS\nslab. <\/p>\n\n\n\n<p>The income here is subject to a tax deduction from source, which includes earnings from fees, rent, salaries, and even interest savings. Therefore, it works as a tax one has to pay in advance. Thus, tax deducted at source leads to <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>Income Tax return filings<\/strong><\/a> which help in saving tax later on. Such tax deducted on source helps government to know which all of the incomes have already been taxed. The government has the information to exempt those from being taxed again.<\/p>\n\n\n\n<p>However, professional tax payment does not\nwork as the Income Tax returns paid in advance. Since there is no national body\nthat governs the collection of professional tax, there is also not a particular\nProfessional tax slab. Instead, the respective state governments come up with\nthe slab rates for the same.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Collects_the_Professional_Tax\"><\/span>Who Collects the Professional Tax?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Professional Tax is collected by the\nCommercial Tax Department. Every state has a department that works on managing\nProfessional tax. After tallying, an aggregate amount goes to municipality\ncorporation fund. <\/p>\n\n\n\n<p>The employer may deduct tax, when it comes\nto companies and then pay this to State Government. Similarly, corporate firms,\nsince they work in a field of trade or commerce, must pay professional tax if\ntheir income exceeds the particular amount. Therefore, an employer has to\nregister with an agency and get the professional tax registration certificate.\nFreelancers must also register and pay Professional tax if their monetary\nbenefit exceeds a threshold.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Professional_Tax_Registration_Certificate\"><\/span>Professional Tax Registration Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The employer (government and no-\ngovernment) are required to deduct professional tax at prescribed rates form\nthe employee&#8217;s salary or wages and deposit the same to respective state\ngovernment. It is the liability of employer to pay tax even though it fails to\ndeduct from the wages or salaries of employees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Process to get Professional Tax Registration Certificate<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Process-to-get-Professional-Tax-Registration-Certificate.png\" alt=\"Process to get Professional Tax Registration Certificate\" class=\"wp-image-21857\" width=\"478\" height=\"478\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Process-to-get-Professional-Tax-Registration-Certificate.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Process-to-get-Professional-Tax-Registration-Certificate-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Process-to-get-Professional-Tax-Registration-Certificate-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Process-to-get-Professional-Tax-Registration-Certificate-768x768.png 768w\" sizes=\"(max-width: 478px) 100vw, 478px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Grant of the Registration Certificate<\/h3>\n\n\n\n<ul><li>If the application is all\ncorrect and complete in all respect along with necessary documents, then\nRegistering authority will generate <strong><em>TIN after verifyin<\/em><\/strong>g. In case an application\nbecomes eligible for granting the registration, then a date of uploading an\napplication will be considered as a date of application for the purpose of\ndetermining the effective date of RC (Registration Certificate).<\/li><li><strong><em>Professional tax Registration\ncertificate<\/em><\/strong> will be sent via email and post.\nThe applicants do not require visiting MSTD offices for procurement of\nregistration certificates as the same would be made available the portal in\ndownload format with digital signature of appropriate certifying authority. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Rejection of the Application<\/h3>\n\n\n\n<ul><li>If an application is found to\nbe defective, then defect memo will be issued and not an e-mail to applicant.\nAn applicant requires rectifying the defects <strong><em>within 30 days<\/em><\/strong>.<\/li><li>In case an applicant rectifies\ndefects within 30 days, then the officer will verify if he finds it\nsatisfactory. Afterwards, TIN would be generated. In this matter a date of\nfirst application would be taken for a purpose of determining the effective\ndate of registration certificate.<\/li><li>If an applicant does not\nrectify defects shown in the defect memo within 30 days, then an application\ncan be rejected, and the temporary profile gets de-activated after 90 days.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Exemptions to Professional Tax<\/h3>\n\n\n\n<p>There are some exemptions provided for\nindividuals to exempt from paying Professional Tax, which are as follows:-<\/p>\n\n\n\n<ul><li>Parents of children having permanent disability or mental disability.<\/li><li>Members of armed forces as defined in Army Act, 1950, Air Force Act, 1950 and Navy Act, 1957 including members of the auxiliary forces or reservists, serving in state.<\/li><li>Badli workers of the textile industry.<\/li><li>An individual suffering from the permanent physical disability (including blindness).<\/li><li>Women exclusively engaged as the agent under <strong>Mahila Pradhan Kshetriya Bachat Yojana<\/strong><sup><a href=\"http:\/\/www.nsiindia.gov.in\/InternalPage.aspx?Id_Pk=130\"><strong>[1]<\/strong><\/a><\/sup> or Director of Small Savings.<\/li><li>Individuals, above 65 years of age.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Professional Tax is the source of revenue for state governments which helps in implementing schemes for a welfare and development of the region. The Professional Tax is deducted by the employers from a salary of the salaried employees and is deposited with state government. Other individuals pay it directly to government or by the local bodies appointed to do so.<\/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\/mandatory-documents-required-for-professional-tax-registration-in-india\/\">\nMandatory Documents Required for Professional Tax Registration in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional tax is one which is levied on all professions, trade and forms of employment. The tax is not restricted itself to professionals alone as it is collected based on an individual&#8217;s income who must have professional tax registration certificate. Therefore, employees, and individuals who own businesses and professionals are taxed under this term if [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21859,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[22],"tags":[1318],"acf":{"service_id":"303"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":7971,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21855"}],"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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21855"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21855\/revisions"}],"predecessor-version":[{"id":21878,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21855\/revisions\/21878"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21859"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}