{"id":39,"date":"2018-10-29T10:36:41","date_gmt":"2018-10-29T10:36:41","guid":{"rendered":"http:\/\/corpbiz.io\/learning\/?p=39"},"modified":"2021-03-01T14:07:42","modified_gmt":"2021-03-01T08:37:42","slug":"professional-tax-registration-rate-slabs","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/professional-tax-registration-rate-slabs\/","title":{"rendered":"Professional Tax Registration: Rate Slabs"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Professional\ntax Registration is a form of taxation that comes from the pocket of the all\nsalaried professional which includes employers, employees, Chartered\nAccountants, doctors as well as the Lawyers.<\/p>\n\n\n\n<ul><li>It is just not the tax that is levied only on the professionals but it is a kind of tax that is levied on all the professionals, trades, and employment. It is charged based on your annual gross salary and under which slab you fall into.<\/li><li>The amount of tax levied on the professionals differs from state to state. The company owner deducts the tax from every employee\u2019s salary, while in other cases you have to pay the tax by yourself.<\/li><li>A lot of salaried employees might be adequately aware of the term \u2018<strong>professional tax<\/strong>\u2019 as it would have been stated in the \u2018<strong>payslips\/Form 16\u2019<\/strong>&nbsp;dispensed to them. But then again all of them may or may not recognize what it is and why is it look as if in their payslips\/Form 16 as a deduction from their monthly salary income.<\/li><\/ul>\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-rate-slabs\/#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-2\" href=\"https:\/\/corpbiz.io\/learning\/professional-tax-registration-rate-slabs\/#How_the_Tax_is_Being_Paid\" >How the Tax is Being Paid?<\/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-rate-slabs\/#What_are_the_Documents_Required_for_the_Professional_Tax_Registration\" >What are the Documents Required for the Professional Tax\nRegistration?<\/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-rate-slabs\/#What_are_the_Penalties_on_Non_Payment_or_Professional_Tax_Registration\" >What are the Penalties on Non Payment or Professional Tax Registration?<\/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\/professional-tax-registration-rate-slabs\/#What_are_the_States_that_come_under_the_Professional_Tax_Registration\" >What are the States that come under the Professional Tax\nRegistration?<\/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\/professional-tax-registration-rate-slabs\/#What_are_the_Exemptions_from_professional_tax_payment\" >What are the Exemptions from professional tax payment?<\/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\/professional-tax-registration-rate-slabs\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\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<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-122.png\" alt=\"needs to pay the professional tax\" class=\"wp-image-9399\" width=\"532\" height=\"309\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-122.png 579w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-122-300x174.png 300w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure><\/div>\n\n\n\n<ul><li>Only Parliament has the exclusive power to create laws concerning Union List which comprises taxes on income according to&nbsp;<strong>Article      246 of the Constitution of India<\/strong>. The state consumes the power to make laws simply concerning the State and Concurrent list.&nbsp;<\/li><li>Nevertheless, professional tax however is a kind of tax on income is charged by State Government, but not all states in the country decide on to levy professional tax.<\/li><li>State Government is also authorized to make laws with terms of professional tax though being a tax on income under&nbsp;<strong><em>Article 276 of the Constitution of India<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Sixtieth_Amendment_of_the_Constitution_of_India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>. It deals with tax on businesses, occupations, professions,&nbsp;<strong>freelancers,<\/strong>&nbsp;and trades.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_the_Tax_is_Being_Paid\"><\/span>How the Tax is Being Paid?<span class=\"ez-toc-section-end\"><\/span><\/h2>\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\/05\/image-123.png\" alt=\"Tax Paid\" class=\"wp-image-9401\" width=\"524\" height=\"317\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-123.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-123-300x182.png 300w\" sizes=\"(max-width: 524px) 100vw, 524px\" \/><\/figure><\/div>\n\n\n\n<ul><li>If you are an employee of a professional company, in that case, the employer deducts the certain amount calculated according to the tax levied by the government, which may vary based on the state you are working in. And for that, the company requires two certificates:-<ul><li><strong>PTRC<\/strong>\u2013&nbsp;<a href=\"https:\/\/corpbiz.io\/professional-tax-registration\"><strong>Professional Tax Registration<\/strong><\/a>&nbsp;Certificate, which works as a proof of your&nbsp;<strong>role as an employer<\/strong>.<\/li><li><strong>PTEC<\/strong>-Professional tax deduction of the employee, this certificate gives you an authority to deduct the tax from the&nbsp;<strong>employee salary<\/strong>.<\/li><\/ul><\/li><li>Within the&nbsp;<strong>30 days<\/strong>, if above being the case, the employer shall receive the certificate of enrolment.<\/li><li>Professional tax registration and tax filing can be done&nbsp;<strong>online<\/strong>. You just need to upload a few&nbsp;<strong>required documents<\/strong>&nbsp;and follow the guidelines.<\/li><li>Professional Tax Registration Certificate is a must for the employer if it fails to do so; the employer will be&nbsp;<strong>penalized<\/strong>.<strong>&nbsp;<\/strong>If you own the firm or run some kind of professional business by yourself, then you have the responsibility of registering your company under the tax      registration and pay the taxes.<\/li><li>If your company has a presence at&nbsp;<strong>several places<\/strong>, then you have to get the&nbsp;<strong>separate tax registration<\/strong>&nbsp;certificates for every place.<\/li><li>Professional from&nbsp;<strong>other countries<\/strong>&nbsp;working in India does&nbsp;<strong>not<\/strong>&nbsp;have      to file the tax registration as they are exempted from this duty.<\/li><li>Indians who are employed by the&nbsp;<strong>Foreign Diplomatic Office<\/strong>, or&nbsp;<strong>embassy<\/strong>&nbsp;or consultant do not have to take the certificate of tax registration.<\/li><\/ul>\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\nRegistration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following are the documents required for the professional tax registration \u2013<\/em><\/strong><\/p>\n\n\n\n<ul><li>Company charter documents(MOA &amp; AOA)<\/li><li>Place of Business proof with ownership details<\/li><li>Place of residence of all the directors with ownership proof<\/li><li>Photographs of all the directors<\/li><li>PAN of business and all the directors<\/li><li>Canceled cheque from the company\u2019s current account and director\u2019s savings\/current account.<\/li><li>Shop and establishment certificate<\/li><li>Salary details of employees<\/li><li>Financial statements of the establishment<\/li><li>Certificate of incorporation<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Penalties_on_Non_Payment_or_Professional_Tax_Registration\"><\/span>What are the Penalties on Non Payment or Professional Tax Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The penalty is being charged according to the&nbsp;<strong>states code of tax registratio<\/strong>n for not registering your company under tax registration. Furthermore, there is a separate charge for not paying the tax within the due date.<\/li><li>While the real amount of penalty or penal interest may be contingent on the respective State\u2019s legislation, a penalty may be charged. It may be&nbsp;<strong>charged by all such states<\/strong>&nbsp;for not registering on one occasional professional tax legislation which turns out to be applicable.<\/li><li>Additionally, there are also&nbsp;<strong>penalties for not producing the payment<\/strong>&nbsp;within the payable date and also inadequate to file the return within the stated due date.<\/li><li>For example:-<ul><li>Rs 5\/day is forced as a penalty<\/li><li>1.25% per month of deferral in payment<\/li><li>10% of the sum of tax in case of delay or non-payment of \u2018professional tax\u2019<\/li><li> Rs 1000\/ Rs 2000 penalty for delay in filing the return <\/li><\/ul><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_States_that_come_under_the_Professional_Tax_Registration\"><\/span>What are the States that come under the Professional Tax\nRegistration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The State Government charges of\nProfessional tax are different in different states. Each state has its\nparticular laws and regulations to administer the professional tax of that\nparticular state. On the other hand, all the states do keep an eye on the slab\nsystem centered on the income to levy professional tax.&nbsp;<\/li><li>Moreover, <strong>Article 276 of the Constitution<\/strong> authorizes the State Government to\ncharge professional tax. However, it has also delivered that for a <strong>maximum of Rs 2,500 beyond<\/strong> which\nprofessional tax cannot be indicted\/charged on any person.<\/li><li>There are several states where\nthe tax is levied on the professionals and others. Following are the <strong>list of the state<\/strong> that comes under the\nmandatory&nbsp;<strong>Professional\ntax Registration<\/strong>\u2013<\/li><\/ul>\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\/05\/image-125.png\" alt=\"state that comes under the mandatory Professional tax Registration\" class=\"wp-image-9403\" width=\"510\" height=\"470\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-125.png 581w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-125-300x276.png 300w\" sizes=\"(max-width: 510px) 100vw, 510px\" \/><\/figure><\/div>\n\n\n\n<p><em><strong>Since, every state has its own tax slab for professional taxes. Given below is the example of few of the states:-<\/strong><\/em><\/p>\n\n\n\n<p><strong>Professional Tax in Karnataka<\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>&nbsp;&nbsp;&nbsp;\n  Monthly salary in Rs.<\/strong>\n  <\/td><td>\n  <strong>&nbsp;&nbsp;&nbsp;&nbsp;\n  Tax (in Rs. Per month )<\/strong>\n  <\/td><\/tr><tr><td>\n  Upto Rs. 14,999\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp; Nil\n  <\/td><\/tr><tr><td>\n  More than 15,000\n  <\/td><td>\n  &nbsp;&nbsp; Rs.200\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong>Professional Tax in Maharashtra<\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Monthly salary in Rs.<\/strong>\n  <\/td><td>\n  <strong>Tax (in Rs. Per month )<\/strong>\n  <\/td><\/tr><tr><td>\n  Upto Rs. 7500 for men\n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  Upto Rs. 10,000 for women\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nil\n  <\/td><\/tr><tr><td>\n  Rs.7,501 to Rs.10,000\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rs.175\n  <\/td><\/tr><tr><td>\n  &nbsp;Rs.10,000 and above\n  <\/td><td>\n  Rs.200 for 12 months and Rs.300 for the last month\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong>Professional Tax in Gujarat<\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Tax (in Rs. Per month )<\/strong>\n  <\/td><td>\n  <strong>Monthly salary in Rs.<\/strong>\n  <\/td><\/tr><tr><td>\n  NIL\n  <\/td><td>\n  Up to Rs.5,999\n  <\/td><\/tr><tr><td>\n  Rs.80\n  <\/td><td>\n  Rs. 6000 to Rs. 8999\n  <\/td><\/tr><tr><td>\n  Rs. 150\n  <\/td><td>\n  Rs. 9000 to Rs. 11,999\n  <\/td><\/tr><tr><td>\n  Rs. 200\n  <\/td><td>\n  Rs. 12,000 and above\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Exemptions_from_professional_tax_payment\"><\/span>What are the Exemptions from professional tax payment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Following are the lists of the individuals are exempted from pa professional tax:-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Blood Relations with a&nbsp;<strong>mental disability<\/strong>&nbsp;or&nbsp;<strong>permanent disability<\/strong><\/li><li>Fellows of the&nbsp;<strong>armed forces<\/strong>, auxiliary forces or soldiers serving in the state.<\/li><li>Persons<strong>, above 65 years<\/strong>&nbsp;of age.<\/li><li>Any person who is&nbsp;<strong>visually<\/strong>&nbsp;challenged and&nbsp;<strong>physically<\/strong>&nbsp;challenged&nbsp;<\/li><li>Women entirely tied up as agent under the:-<ul><li>\u2018Mahila Pradhan Kshetriya Bachat Yojana\u2019 or \u2018<\/li><li>Director of Small Savings\u2019.<\/li><\/ul><\/li><li><strong>Parentages or caretakers<\/strong>&nbsp;of persons who are&nbsp;<strong>mentally<\/strong>&nbsp;challenged<\/li><li>\u2018<strong>Badli workers\u2019<\/strong>&nbsp;from all textile industry.&nbsp;<\/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>Henceforward, It&#8217;s compulsory for people who are employed, whereas enrolment is indispensable for those who are involved in a profession, possess a trade, business. We at&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz&nbsp;<\/strong><\/a>are ready to assist you every time you need help with the&nbsp;<strong>professional Tax Registration and Filing<\/strong>. We have a dedicated team of professionals who are always there to help you and fulfill the responsibilities.<\/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\/apply-for-professional-tax-registration-online\/\">How to apply for Professional Tax Registration in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional tax Registration is a form of taxation that comes from the pocket of the all salaried professional which includes employers, employees, Chartered Accountants, doctors as well as the Lawyers. It is just not the tax that is levied only on the professionals but it is a kind of tax that is levied on all [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":26718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[22],"tags":[24],"acf":{"service_id":"303"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":6968,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39"}],"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\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=39"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39\/revisions"}],"predecessor-version":[{"id":26684,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39\/revisions\/26684"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/26718"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=39"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=39"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=39"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}