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Professional tax is a direct tax imposed by the government on individuals earning income through professions, employment, and business. It is levied by state authorities or union territories. If an individual is a salaried or wage earner, the employer deducts the tax from their salary or wages and submits it to the state government. For other classes, owners directly pay the taxes to the governments. The tax may vary between states but cannot exceed a limit of Rs. 2500/- per year.
Employers are responsible for withholding professional taxes from employee salaries and remitting them to the state government. Self-employed individuals, professionals like doctors, lawyers, Chartered Accountants, and businesses must directly pay the tax to the state. The calculations and rates of professional tax may vary state-wise, however, the maximum limit is Rs. 2500 yearly.
Some of the key benefits of PT registration are given below:
Professional Tax Registration certificates are of two types:
The concept of PTEC and PTRC is usually applicable in the state of Maharashtra. Other states have only one Registration.
Some of the individuals are exempted from paying professional taxes under professional tax Rules. Details of exempted individuals are:
In India, professionals must register for professional tax within 30 days of starting their practice, while businesses need to do so within 30 days of hiring staff. Applications for a professional tax certificate should be submitted to the relevant state tax department within this timeframe. If a business operates at multiple locations, it must apply separately to each tax authority corresponding to those locations. This ensures compliance with local rules and regulations which helps in avoiding penalties.
Payment due dates vary state-wise. In some states, it is paid by the 10th of the same month and in some states where there are no employees, the annual return is only required to be filed.
Some of the key documents required for professional tax registration are:
The below mentioned gives an overview towards employers and individuals for PT registration process:
Visit the state government website for professional tax registration or enrollment certificate. Different states have their own state portal for making professional tax registration applications.
As per the state process, collect all necessary documents and complete the application forms. Most states have an online application process.
The tax authority will review the submitted application and documents to ensure all information is accurate and complete.
After verifying and approving the application, the tax authority will issue the Professional Tax Enrollment or Registration Certificate.
Note: In the case of private limited companies, PT Registrations come along with Company incorporation. No need to file an application separately.
The Professional Tax Registration applicability of the tax rates may differ accordingly with respect to the rates and procedures of different states. The below mentioned are the states that have Professional Tax registration applicability:
Professional tax rate for different state are given below in the table for your reference:
| State | Monthly Salaries | Tax Per Month |
|---|---|---|
| Karnataka | Up to INR 15,000 Above INR 15,000 |
NIL INR 200 |
| Bihar | Up to INR 3,00,000 From INR 3,00,001 to INR 5,00,000 From INR 5,00,001 to INR 10,00,000 Above INR 10,00,000 |
NIL INR 1,000 INR 2,000 INR 2,500 |
| West Bengal | Up to INR 8,500 From INR 8,501 to INR 10,000 From INR 10,001 to INR 15,000 From INR 15,001 to INR 25,000 From INR 25,001 to INR 40,000 Above INR 40,000 |
NIL INR 90 INR 110 INR 130 INR 150 INR 200 |
| Andhra Pradesh | Up to INR 15,000 From INR 15,001 to INR 20,000 Above INR 20,000 |
NIL INR 150 INR 200 |
| Telangana | Up to INR 15,000 From INR 15,001 to INR 20,000 Above INR 20,000 |
NIL INR 150 INR 200 |
| Maharashtra | Up to INR 7,500 for men Up to INR 10,000 for women From INR 7,500 to INR 10,000 Above INR 10,000 |
NIL NIL INR 175 INR 200 (INR 300/- for February) |
| Tamil Nadu | Up to INR 21,000 From INR 21,001 to INR 30,000 From INR 30,001 to INR 45,000 From INR 45,001 to INR 60,000 From INR 60,001 to INR 75,000 Above INR 75,000 |
NIL INR 100 INR 235 INR 510 INR 760 INR 1,095 |
| Gujarat | Up to INR 5,999 From INR 6,000 to INR 8,999 From INR 9,000 to INR 11,999 INR 12,000 and above |
NIL INR 80 INR 150 INR 200 |
| Assam | Up to INR 10,000 From INR 10,001 to INR 15,000 From INR 15,001 to INR 25,000 Above INR 25,000 |
NIL INR 150 INR 180 INR 208, INR 212 for February |
| Kerala | Up to INR 1,999 From INR 2,000 to INR 2,999 From INR 3,000 to INR 4,999 From INR 5,000 to INR 7,499 From INR 7,500 to INR 9,999 From INR 10,000 to INR 12,499 From INR 12,500 to INR 16,666 From INR 16,667 to INR 20,833 Above INR 20,834 |
NIL INR 20 INR 30 INR 50 INR 75 INR 100 INR 125 INR 166 INR 208/-(INR 212 for February) |
| Meghalaya | Up to INR 4,166 From INR 4,167 to INR 6,250 From INR 6,251 to INR 8,333 From INR 8,334 to INR 12,500 From INR 12,501 to INR 16,666 From INR 16,667 to INR 20,833 From INR 20,834 to INR 25,000 From INR 25,001 to INR 29,166 From INR 29,617 to INR 33,333 From INR 33,334 to INR 37,500 From INR 37,501 to INR 41,666 Above INR 41,666 |
NIL INR 16.50 INR 25 INR 41.50 INR 62.50 INR 83.33 INR 104.16 INR 125 INR 150 INR 175 INR 200 INR 208/- (INR 212 for February) |
| Odisha | Up to INR 5,000 From INR 5,001 to INR 6,000 From INR 6,001 to INR 8,000 From INR 8,001 to INR 10,000 From INR 10,001 to INR 15,000 From INR 15,001 to INR 20,000 Above INR 20,000 |
NIL INR 30 INR 50 INR 75 INR 100 INR 150 INR 200 |
| Tripura | Up to INR 5,000 From INR 5,001 to INR 7,000 From INR 7,001 to INR 9,000 From INR 9,001 to INR 12,000 From INR 12,001 to INR 15,000 Above INR 15,000 |
NIL INR 70 INR 120 INR 140 INR 190 INR 208 (INR 212 for February) |
| Madhya Pradesh | Up to INR 1,50,000 From INR 1,50,001 to INR 1,80,000 Above INR 1,80,000 |
NIL INR 125 INR 212 |
| Sikkim | Up to INR 20,000 From INR 20,001 to INR 30,000 From INR 30,001 to INR 40,000 Above INR 40,000 |
NIL INR 125 INR 150 INR 200 |
| Chhattisgarh | Up to INR 1,50,000 From INR 1,50,001 to INR 2,00,000 From INR 2,00,000 to INR 2,50,000 From INR 2,50,000 to INR 3,00,000 Above INR 3,00,000 |
NIL INR 150 INR 180 INR 190 INR 200 |
The below mentioned are the applicable penalties:
| Particulars | Penalties |
|---|---|
| For Late Filing of Returns | Various states have imposed a penalty of Rs. 300/- for this specific delayed return. For Maharashtra, Late fee is Rs 1000 monthly |
| Obtaining the Certificate of Enrolment | The delayed obtaining of the certificate will attract a penalty of Rs. 5 per day for every delayed return. |
| Late payment of PT | The penalty stands at the rate of 2% per month for the delayed payment. |
Choosing Bizfoc for professional tax registration ensures expert guidance through the complex process, compliance with state-specific regulations, and efficient handling of documentation. Their support helps minimize errors and penalties, allowing you to focus on your business with confidence.
The aspect of professional tax plays a very vital role in the developmental process that takes place as the tax is paid towards the state government. One has the responsibility to deduct the professional tax which is to be done by the employers of any profession or trade towards the respective state legislation.
Visit the official website of each state's tax department for Professional Tax registration and payment links. Alternatively, use the state-specific online portals for direct access.
Professional tax is applicable to individuals as well as different types of businesses earning income from employment or profession, typically imposed by state governments in India.
To download a professional tax certificate, visit your state's tax department website, log in to your account, and follow the procedure for certificate issuance or download.
To register for professional tax, visit your state's tax department website, fill out the registration form, and submit the required documents either online or at a designated office.
To register for Professional Tax, complete and submit the registration form along with required documents on your state’s tax department website or at a local office.
To check a PT registration number, visit your state's tax department website, log in to your account, and navigate to the section for tax details or registration status.
The collection of professional tax is done by the state government which is deducted from the income of the salary and certainly applies to the income made by the professional and the business.
In every trade or profession, an employer is the only person responsible for the deduction of professional tax towards the employees towards the State Government.
There are only two types of professional taxpayers- a Profession Tax Enrolment Certificate and a Profession Tax Registration Certificate.
The professional tax limit to be deducted by the state is Rs. 2,500.
The penalty varies upon different states which is to be made accordingly.
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