Professional Tax Registration
Professional tax registration is required for employers and persons engaged in any profession, trade or calling.
Introduction
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.
Professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month. Some of the state governments that have levied professional tax are Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh. In the case of salaried employees and wage earners, the Employer is liable to deduct professional tax with the State Government. In case of other class of Individuals, this tax is liable to be paid by the person himself.
Why Obtain Professional Tax Registration
Statutory Requirement
Employers in certain states are required to mandatorily obtain professional tax registration, deduct and pay service tax on behalf of employees.
Avoid Penalty
Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time.
Tax Deductible
A deduction from salary can be claimed by the taxpayer on account of professional tax paid. The deduction for professional tax will be allowed in the year in which the tax is actually paid by the employee.
Easy Compliance
Compliance with professional tax regulation is easy. Professional tax registration can be obtained easily and compliance maintained easily.
State Government Tax
State Governments and Local Authorities are empowered to collect professional taxes on professions, trades, callings, and employment. The amount of professional tax collected does not exceed Rs.2500 per annum.
How we process an Appointment of Director
Application Preparation
Our Professional Tax Expert will assess your business and prepare the documentation for professional tax application with the State Government.
Application Filing
Signed professional tax application is submitted with the relevant department by an experienced expert at Him Consultant.
Registration
The application is scrutinized by the Government department. If the application is in order, professional tax registration is provided.
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