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Who has to pay the Professional in India
Professional Tax in India is applicable for the individuals and entities mentioned here :
Who is exempted from paying the professional tax in India?
The penalties on professional Tax vary in each state. Also, there is a penalty for Non-Registration. Along with the penalty for non-payment, there is also a penalty for late return filing.
Documents required for Professional tax registration in India
- An acknowledgment of the online form, along with the printout of the digital form submitted.
- Copy of PAN Card.
- Residence proof of Partner, Director, Proprietor.
- Proof of Constitution of business like Certificate of Incorporation.
- Memorandum of Association
- Articles of Association
- Address proof of Business place.
- Blank Cancelled Cheque.
- Establishment Certificate.
- PAN& PTEC details.
- Current account statement
- Business premise proof sale deed if the premise is owned and NOC from the owner of the place is rented.
Professional Tax registration
The procedure for the registration of professional tax varies from state to state, the slab rates can vary from one state to another, where the business owner has employees that are employed in different states then one has to get a professional tax registration for all the states.
The application for the registration under professional tax is to be submitted to the state tax department within 30 days of employing the staff in the business. If there is more than one place of work then an application is to be made separately to each authority considering the place of work that comes under the authority's jurisdiction.
In case there is a delay in the payment of the professional tax, there is a penalty of Rs 5 per day, there is also a penalty of nonpayment there is a penalty of 10% of the tax.
Frequency of filing the returns: The frequency with which one has to file the returns are also depended on the state the person is residing in, so before filing the returns it is very important to know the rules of the particular state.
Which states levy Professional tax in India?
The maximum amount an individual needs to pay as professional tax is Rs.2500. The tax amount is based on the gross income of the professional. It happens to be deducted from his or her income every month by the employer. Here is the list of states where the professional tax is levied.
- Andhra Pradesh
- Assam
- Bihar
- Chattisgarh
- Gujarat
- Karnataka
- Kerala
- Madhya Pradesh
- Maharashtra
- Manipur
- Meghalaya
- Mizoram
- Orissa
- Puducherry
- Tamil Nadu
- Tripura
- West Bengal
Here is the list of states where the professional tax is not applicable
- Arunachal Pradesh
- Delhi
- Goa
- Haryana
- Himachal Pradesh
- Jammu & Kashmir
- Jharkhand
- Nagaland
- Punjab
- Rajasthan
- Sikkim
- Uttar Pradesh
- Uttaranchal
- Andaman & Nicobar
- Chandigarh
- Daman & Diu
- Dadra & Nagar Haveli
- Lakshadeep
Why is Professional tax different in a different state?
As the state government levies the professional tax, it differs in each state. Each state declares a slab, and the professional tax is deducted based on these slabs. Many states and union territories do not charge any professional tax too. The professional tax is paid in 12 equal installments, in such situations where the source of income is falling under the sectors they will be liable for separate tax.
As each state has its regulations and laws on the professional tax, the professional tax varies from state to state. However, a slab system is followed by all the states. The slab system is based on the income of the individual. Hence, the state government levies the tax based on income.
Types of Professional Tax Certificates
There are two types of Professional tax certificates:
PTEC (Professional tax enrollment certificate): This is paid by the business entity, owner, or the professional i.e. Private or the Public Limited Company, Sole proprietor, Director, etc.
PTRC (Professional tax registration certificate): The government or the Non- government employer is deducting the tax from the employee's wages and deposit the same to the government.
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Professional Tax Registration in State
Professional Tax Registration in City
Last updated: Dec 10, 2021
Professional Tax Registration FAQ's