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Professional Tax Registration

What is exactly is the Professional Tax?

Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and has to be compulsorily paid by every member of staff employed in private companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.

Profession Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors. The following states impose this tax: Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. 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. This tax needs to be deducted from the salary or wages paid; the amount varies by state and amount, but is capped at Rs. 2500 per annum..

What You Need To Know

In Every State

If you have employees in more than one state, you would need to get a Profession Tax Registration in each state. Even the rate at which it must be paid will vary. This makes it cumbersome for many small businesses to comply with. Do note, however, that many north Indian states do not levy Profession Tax at all.

Filing Returns

The frequency of return filing depends on the state you're in. For example, in Maharashtra, returns can be filed annually if the liability is under Rs. 5000, quarterly if the liability is under Rs. 20,000 and monthly if it is above Rs. 20,000. However, in West Bengal, returns need only be filed once every year. This is the approach, in fact, many states are moving toward now.

Penalties Apply

A penalty of 10% of the amount owed can be imposed in Maharashtra in case of delayed payment of Profession Tax. A delay in obtaining the Enrollment Certificate will be charged at Rs. 2 per day.

Profession Tax & Slab Rates around India

Profession Tax in Maharashtra

In Maharashtra, profession tax is governed by the Maharashtra State Tax on Professions, Trades, Calling and Employment Act, 1975. All employees and professionals with a monthly salary of over Rs. 7500 must pay profession tax. Those with a salary of Rs. 7500 to Rs. 10,000 must pay Rs. 175 per month, while those with a higher salary must pay Rs. 200 a month (Rs. 300 in February). Payment of the profession tax that is collected can now be made online..

Profession Tax in Tamil Nadu

Profession tax is governed by the Town Panchayats, Municipalities and Municipal Corporation Rules, 1988. The slab rates are as follows: All employees and professionals with a monthly salary of over Rs. 3500 must pay profession tax, starting at just Rs. 16 per month and going up to Rs. 182 per month for those earning over Rs. 12,501.

Profession Tax Registration Process

1 Working Day

You need to send in PAN cards, identity and address proofs of the proprietor/partners/directors. Details of your employees also need to be submitted.

2 Working Days

The Professional Tax application will be filed for all employees and submitted to respective authorities by our affiliate. Should all your documents be in order, this will take no longer than two working days.

7 Working Days

Within 5 to 7 working days, we will give you a basic acknowledgement. If the documents are not in order or the inspector asks for additional documents, the process will be completed as soon as you submit the additional documents. The hard copy is issued within 10 days in major cities, but would take 15 to 20 days elsewhere.

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Professional Tax Registration in India
Professional Tax Registration in Andaman and Nicobar Islands Professional Tax Registration in Andhra Pradesh Professional Tax Registration in Arunachal Pradesh Professional Tax Registration in Assam
Professional Tax Registration in Bihar Professional Tax Registration in Chandigarh Professional Tax Registration in Chhattisgarh Professional Tax Registration in Dadra and Nagar Haveli
Professional Tax Registration in Daman and Diu Professional Tax Registration in Delhi Professional Tax Registration in Goa Professional Tax Registration in Gujarat
Professional Tax Registration in Haryana Professional Tax Registration in Himachal Pradesh Professional Tax Registration in Jammu and Kashmir Professional Tax Registration in Jharkhand
Professional Tax Registration in Karnataka Professional Tax Registration in Kerala Professional Tax Registration in Lakshadweep Professional Tax Registration in Madhya Pradesh
Professional Tax Registration in Maharashtra Professional Tax Registration in Manipur Professional Tax Registration in Meghalaya Professional Tax Registration in Mizoram
Professional Tax Registration in Nagaland Professional Tax Registration in Odisha Professional Tax Registration in Puducherry Professional Tax Registration in Punjab
Professional Tax Registration in Rajasthan Professional Tax Registration in Sikkim Professional Tax Registration in Tamil Nadu Professional Tax Registration in Telangana
Professional Tax Registration in Tripura Professional Tax Registration in Uttar Pradesh Professional Tax Registration in Uttarakhand Professional Tax Registration in West Bengal
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