Professional Tax Registration

Professional Tax is levied by State Government on all salaried employees, professionals, and trades in India. It is a compulsory tax paid by all the employees employed in a company.

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Professional Tax Registration

Professional Tax is levied by State Government on all salaried employees, professionals, and trades in India. It is a compulsory tax paid by all the employees employed in a company. It is the responsibility of the owner or employer to deduct such tax from the salary of an employee and deposit the same with the respective State Government.

Professional tax is deducted every month from the salary of an employee and is levied on few states such as Karnataka, West Bengal, Maharashtra, etc. however it does not apply to few other states such as Delhi, Haryana, UP.

Applicability

Professional Tax applies to the following class of persons in states where it is applicable:

  • Individual
  • HUF
  • Private/Public/One person Company
  • Co-operative Society
  • Association of Person
  • Body of Individuals

Payment of Professional Tax

Professional Tax is paid and collected at a pre-determined slab rate depending upon respective state either annually or monthly collected by the Commercial Tax Department of the respective state. Professional tax is paid directly by a self-employed person engaged in profession or trade business and the case of salaried employees, his employer, is responsible for deducting and depositing such tax to the respective State Government.

In the case of a salaried individual, the employer shall deposit such tax every month, and a self-employed person can pay professional tax either monthly or annually. The self-employed taxpayer shall obtain Certificate of Enrollment from the tax department of the concerned state.

Tax Rate Slab

Professional tax is a state tax that is paid as per the slab varies as per the state. Some states charge it at a fixed percentage while others charge it as a fixed amount based on Income Slab such as:

State

Income

Tax Liability

Andhra Pradesh

Up to 15000

15000-20000

Income exceeding 20000

NIL

INR 150

INR 200

Gujarat

Up to 5999

6000-8999

9000-11999

Income exceeding 12000

NIL

INR 80

INR 150

INR 200

Karnataka

Up to 15000

Income exceeding 15000

NIL

INR 200

Kerala

Up to 11999

12000-17999

18000-29999

30000-44999

45000-59999

60000-74999

75000-99999

100000-124999

Income exceeding 125000

NIL

INR 120

INR 180

INR 300

INR 450

INR 600

INR 750

INR 1000

1250

Maharashtra

Up to 7500 (For male)

Up to 10000 (for female)

7500-10000 (for male)

Income exceeding 10000 (for male & female)

NIL

NIL

INR 175

INR 200 – 11 months

INR 300- 12 months

Telangana

Up to 15000

15000-20000

Exceeding 20000

For professionals such as lawyers, architect, practising CA/CA/CMA with experience

ü  up to 5 years

ü  more than five years

 

 

NIL

INR 150

INR 200

 

 

 

NIL

INR 2500 (annual)

West Bengal

Up to 10000

10000-15000

15001-25000
25001-40000

Income exceeding 40000

NIL

INR 110

INR 130

INR 150

INR 200

Benefits of Professional Tax Registration Online

Following are the reasons why one should never miss professional tax liability:

  • Payment of professional tax is a judicial requirement and hence to avoid any penalty or prosecution, self-employed person and employer shall pay the professional tax as per the rates of its concerned state without any delay
  • 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.
  • The deduction can be claimed of earlier paid professional tax on salary.
  • Professional tax is a state tax; therefore it authorizes state government or local tax authorities to collect professional tax deducted on professional fees, business income, and salary.

Documents required for Professional Tax Registration Certificate

List of documents required to get professional tax registration:

  • if the applicant is Company: COI, AOA & MOA
  • if the applicant is LLP: LLP Agreement
  • PAN of the company
  • Address proof for business
  • Identity proof of all directors
  • Address proof of directors
  • Passport size photograph
  • Salary register maintained by the company of its employee

Professional Tax Registration Process Online

Dealers seeking professional tax registration shall follow these steps to get professional tax registration certificate:

  • The applicant can apply online through CTD portal
  • The applicant shall file the form and attach necessary scanned documents (Mentioned above)
  • One can also apply offline by direct submitting the documents and application form with prescribed fee to the concerned State Government
  • Once the applicant applied for registration, shall submit the hard copy to the concerned tax department
  • Tax authority upon the receipt of an application shall scrutiny the application for its correctness
  • Once the department scan and verify the application shall approve the same and will issue a registration certificate to the applicant
  • Department can also raise a query in case it found a deficiency in the application which shall be responded on time.

Frequently Asked Questions

 

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