For delays in obtaining Registration Certificate, a penalty of ₹ 5/- per day is levied. In case of non/late payment of profession tax, the penalty will amount to 10% of the amount of tax. In case of late filing of returns, a penalty of ₹ 300 per return will be imposed.
Professional Tax Registration
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Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade. Unlike income tax imposed by the Central Government, professional tax is levied by the government of a state or union territory in India.
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Introduction
Professional Tax Registration Services in India
Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade. Unlike income tax imposed by the Central Government, professional tax is levied by the government of a state or union territory in India. In the case of salaried and wage earners, the professional tax is liable to be deducted by the Employer from the salary/wages, and the same is to be deposited to the state government. In the case of other classes of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one State to another, but it has a maximum limit of Rs. 2500/- per year
Professional Tax Applicability
- An Individual
- A Hindu Undivided Family (HUF)
- A Company/Firm/Co-operative Society/Association of persons or a body of individuals, whether incorporated or not
Benefits
Benefits of Professional Tax Registration in India
Process
Professional Tax Registration In 5 Easy Steps
Types of Professional Tax Certificates
PTEC (Professional Tax Enrolment Certificate)
This type of professional tax is paid by the business entity, i.e. Private/ Public Limited Company, owner or a professional.
PTRC (Professional Tax Registration Certificate)
The second part of the name should ideally suggest the business activity of the company.
Document Checklist
Documents Required for Professional Tax Registration Online
Faq
Frequently Asked Questions (FAQ)
In India, Professional Tax is calculated on Salary slabs. Under minimum salary, there is no tax. The maximum amount paid as Professional Tax is Rs.2500 per year. The tax slabs differ from state to state.
The professional Tax is a state-level tax imposed on the income earned through profession, trade, calling, or employment. The Tax is based on the slab dependent on the payment of the individual who may be self-employed or working as an employee of an entity.
Yes, Professional Tax is applicable even for freelance professionals if income exceeds the specified limit as per the Professional Tax Laws applicable in the state where the freelancer resides.
The liability will arise on the date on which the employer disburses salary to any of his employees in the taxable limit for the first time.
The calculation of professional tax varies from state to state. It is typically based on factors such as income slabs, salary/wage brackets, or fixed amounts determined by the state government.
The frequency of professional tax payment depends on the state. In some states, it is a monthly obligation, while in others, it may be quarterly or annual. The due dates for payment also vary between states. It is essential to check the specific requirements of the respective state where the tax is being paid.
Professional tax is imposed only in following States:
Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.
- In case of individuals who are self employed the tax has to be paid by the individual himself
- In case of employed individuals, the liability is on the employer
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