Professional tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as Chartered Accountant, Company Secretary, Lawyer, Doctor etc. are required to pay this Professional Tax.
Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer’s salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.
Professional Tax is a statutory requirement & failure to deduct professional tax and deposit same would attract penalties.
Professional Tax is INR 200/- per employee per month for 11 month in most of states and 300/- in one month totaling to INR 2,500 for year.
Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh, these are states which are levying Professional Tax .
Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice.
Frequency of returns to be filed depend upon state in which Tax is deducted.
Professional Tax is a State Level Tax and states have power to decide whether to levy or not.
Day 1- ComplyPartner Team would interact with client
Day 1- Required Documents to be provided by client
Day 3- Team would check and prepare the application
Day 10- If Application is in order, registration is done
Day 6- Signed Application form to be submitted in same town
Day 5- Professional tax experts would review the application
Address Proof of establishment
Address proof of Partners, Proprietor or Directors as applicable
Photo of Proprietor, Partner or Directors as Applicable
Salary details of employees
If it not the first year or you have not obtained the PT registration at the start of business or profession you need to also provide financial statements.