Professional Tax Registration
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Professional Tax Registration in India
In India, a tax imposed on trades and professions is known as professional tax. It is mandatory for each member of the staff hired by a private company to pay this state-level tax. The private company's employer must deduct professional tax from the employee's pay cheques and submit the amount collected thereafter to the concerned government department. MERALEGAL can assist you in filing professional tax. Professional tax is typically a slab based amount which is deducted from the professional's gross income.It gets deducted from a person’s monthly income.Maharashtra, West Bengal, Karnataka, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya,Orissa, Tripura, and Madhya Pradesh. The business employer is liable to deduct professional tax with the State Government when it comes to contract staff and salaried employees. For other classes of persons, payment of this tax is the legal responsibility of the person himself.The professional team of MERALEGAL is there to help you get professional tax registration in India at the best prices in the market.
Process for Professional Tax Registration
Professional Tax Rate
INR 2,500 is the highest amount that can be paid yearly towards professional tax. Professional tax is typically a slab based amount which is deducted from the professional's gross income. It is deducted from a person’s monthly income. The tax rate is varied from state to state as stated below:
Exemption from Professional tax
The individuals referred to below are exempted to pay professional tax
- Parents or guardians of persons who are mentally challenged
Professional Tax Registration Process in India
The professional tax registration procedure is not very tedious.There are three important points which need to be taken into account:
If there is a delay in tax payment, penalties are levied, which are different from one state to another.
Steps involved in Online Professional Tax Registration
Documents required for Professional Tax Registration
- Certificate of Incorporation, MOA & AOA / LLP Agreement.
- PAN card of Company/LLP, which is duly attested by the director of the company.
- Address proof of business along with a NOC from the owner of the property.
- The bank account of the company, bank statement, and one canceled cheque.
- Passport size photographs, address, and identity proof of all the directors.
- Statement of consent by partners.
- Attendance and salary register.
- Shop and Establishment certificate.
Importance of Professional Tax Registration
State Government Tax
State Governments and Local bodies are authorized to collect professional taxes from professionals, trades, and employment. The upper limit on the amount of professional tax collected is Rs.2500 per annum.
Frequently Asked Questions ?
It is a revenue income for the state government, which allows the government to implement development and welfare work in the state. The income tax deduction is given on tax paid as a professional tax.
The highest amount of professional tax on a person is Rs. 2,500 annually and the amount is forwarded to the respective State Government. The total amount of professional tax paid in a year be acceptable for deduction according to the Income Tax Act, 1961
The stipend is paid to those who are working to seek some knowledge; hence the stipend is not subjected to professional tax.