Professional tax registration

Last Updated On: Feb. 9, 2020, 1:38 p.m.


Professional tax is levied by the various State Governments of India on salaried individuals working in government or non-government entities or in practice of any profession, such as Lawyers, Doctors, CAs. etc. or to carry out some form of business, are required to pay this professional tax. Professional tax is tax levied by various state governments of India on professionals, etc.

What is professional tax?

A Professional tax is levied by the state on the income earned by the profession , trade , calling or employment . The tax is levied based on slab rates depending upon the income of an individual. It is almost similar to that of an income tax, with only difference that an income tax is collected by the central government while professional tax is collected by the state government.
The maximum of the tax that is to be collected is Rs. 2500 in any state.
Professional tax is imposed at the state level.
However, not all states impose this tax.
The states which impose professional tax are as follows:
•    Karnataka
•    Bihar
•    West Bengal
•    Andhra Pradesh
•    Telangana
•    Maharashtra
•    Tamil Nadu
•    Gujarat
•    Assam
•    Chhattisgarh
•    Kerala
•    Meghalaya
•    Odisha
•    Tripura
•    Madhya Pradesh
•    Sikkim.
The professional tax is a source of revenue. It is made payable by members of staff employed in private companies.
Professional Tax Registration Process in India

The professional tax registration procedure is very easy. Here are three important points that one needs to know and understand in detail.

In case you are the owner of a business and have employees under different states working for you, then you will have to get a professional tax registration for all the states. The tax slab rates can vary from one state to another. This can make it a cumbersome task for small-scale industries. Many states in North India do not have to pay professional taxes.

The frequency with which one needs to file returns will depend on the state the person residing in that particular state. Hence, before filing for a return it is important to know the rules of the state.

The Maharashtra government, for instance, can levy a penalty of about 10 percent the amount which was delayed. Hence, the more one avoids paying the registration, the more they will have to worry about the penalties.

Who is responsible to deduct Professional Tax?
    The owner of a business is responsible to deduct professional tax from the salaries of his employees and submit the amount so collected to the appropriate government department.
    He has to provide a return to the tax department in the prescribed form within the specified time.
    The return should include the proof of tax payment.
    If in case the payment proof is not enclosed, the return shall be deemed incomplete and invalid.

Documents required:
•    Id proof : copy of Aadhar card/ voter id card / passport
•    PAN
•    Tan , if any
•    ADDRESS PROOF such as electricity , water , telephone bill of the registered premises
•    If rented then copy of rent agreement
•    If owned then copy of property papers
•    Partnership deed / MOA or AOA ( whichever applicable)
•    And it is to be noted that, all these documents are to be self-attested.

1. Pan card of the proprietor
2. ID Proof of the proprietor
3. Address proof of the proprietor
4. Details of employees

1. PAN Card of the Partners
2. ID Proof of the Partners
3. Address Proof of the Partners
4. Details of Employees

1. PAN Card of all the administrators of the corporate
2. ID Proof of the Directors
3. Address prsoof of the directors
4. Details of employee

Procedure of registration:
1.    The first step is to get registered as a ‘payee’ for professional tax in the local Professional Tax Office under the respective State’s Act. This is compulsory for all individuals, persons and bodies who are liable to pay professional tax.
2.    As to calculation and payment of these taxes through prescribed forms and methods, you have to do it yourself. All calculation and payment has to be audited and certified by a Chartered Accountant.
3.    It is the duty of the employer to deduct Professional Tax. And except paying skilled tax for its own activities, each leader needs to calculate, deduct and pay the skilled tax on the salaries paid to workers.

The individuals exempted to pay professional tax are:
- Parents of children with a permanent disability or mental disability.
- Members of the armed forces, including members of auxiliary forces or reservists, serving in the state.
- Individuals, over 65 years of age.
- An individual who is physically challenged (also visually challenged).
- Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
- Parents or guardians of individuals who are mentally challenged
- Badli workers in the textile industry.


Steps involved in Online Professional Tax Registration


Within one working day, you will have to provide your PAN card, address proofs and identity proofs of all the directors/partners/proprietors of the company. You also need to furnish the details of all employees working under you.


The application form for professional tax will be then filled up by the employees and then submitted to the concerned authorities by our expert affiliates. If the documents are all provided in order, then the process will not take more than two working days.


Within five to seven working days, the basic acknowledgment will be provided by us. If the documents are not in proper order, the inspector will ask for the missing documents. As soon as you provide the missing ones, the process will be completed. The registration hard copy will be issued within 10 days in all the major cities. In other places, it might take up to 15 to 20 working days.



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