Professional Tax Registration in India, fees, form & process [2020] - Onfiling
Registration

Professional Tax

Overview

Professional tax is a tax that is levied on all kinds of professions, trades, and employment on the basis of such income. It is imposed by the state government in India.

Each professional whether the Directors of the company , partners of LLP or any other employer is under the obligation to have professional tax registration and to ensure that it must be deducted from the salary of employees. And this deducted tax is deposited in the appropriate office designated by the state government and a return of the professional tax must be filed specifying the payment of professional tax.

Benefits of Professional Tax
  • Very easy to comply and follow the regulations of professional tax
  • Failure to pay this tax results in huge penalties
  • According to the rules and regulations of India, every employee is bound by the judiciary to obtain the registration of professional tax.
  • You can claim deductions in the salary on the basis of professional tax paid.
  • The local authorities and the state government have the right to collect professional taxes based on employment.

Registration Process

The registration process of professional tax varies from state to state.

Frequency to file returns

It is important to know the rules of the state before filing for a return because it depends on the state the person lives in.

Penalties

This tax is levied on all types of business entities. Delay in obtaining professional tax can lead to a penalty. In case of late payment of professional tax the penalty will be 10% of the amount of tax.

Professional Tax Rate

The maximum amount payable p.a. towards this tax is INR 2500. This tax is usually a slab amount based on the gross income of the professional.

Responsibility of Employer

The owner of a business is responsible for deducting professional tax from the salaries of his employees and paying the amount to the appropriate government department in the prescribed form within the specified time.

First day

Within first working day, you need to provide your PAN details, address proof and identity proofs of all the directors/partners/proprietors of the company.

Second day

On second working day the application form for professional tax will be filled by the employees and then submitted to the concerned authorities.

Seven days

Within seven working days the basic acknowledgment will be given to you. In case the documents are complete, then the registration hard copy will be issued within 10 days in all major cities. Otherwise you need to submit your documents if missing as mentioned by authorities.

Exemptions from Professional Tax
  • Members of the armed forces including members of auxiliary forces or reservists serving in the state
  • Parents of children with a permanent disability
  • Individuals over 65 years of age
  • Physically challenges individual
  • Women engaged as agent in Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings
  • Badli workers in textile industry

FAQS

Yes it is necessary to pay professional tax otherwise there are penalties and fines in case of non-compliance.
Professional tax is calculated on the basis of salary slabs. The maximum amount under which tax can be levied on a person is Rs. 2500 per annum.

List of Documents

  • Premises proof of company
  • Bank statement and cancelled cheque
  • Certificate of incorporation
  • List of directors and passport size photographs
  • Attendance and salary register
  • Board Resolution
  • PAN card of company/LLP

Pricing Plan

BASIC ₹12,500
One Time

  • Professional tax registration for employers having less than 20 employees
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SILVER ₹13500
One Time

  • Professional tax registration for employers having less than 40 employees
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Get Plan

GOLD ₹15500
One Time

  • Professional tax registration for employers having less than 50 employees
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Get Plan

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