Startup Counter

THINGS TO KNOW BEFORE YOU REGISTER- PROFESSIONAL TAX REGISTRATION IN INDIA

Professional Tax is a tax levied by various Indian state governments on people who earn money as Chartered Accountants, Company Secretaries, Lawyers, Doctors, and other professionals, as well as from companies, LLPs, Directors, and Designated Partners.

startup image
introduction

INTRODUCTION

Profession tax is a tax levied by the state governments in India. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Profession tax is levied by particular Municipal Corporations. Majority of the Indian states impose professional tax. It is a source of revenue for the State government. The maximum amount payable per year is INR 2,500 & there are different predetermined slabs in different states,in line with the taxpayer's income. It is also payable by employer of staff employed in private companies. It is duty of employer to deduct professional tax every month and sent to the Municipal Corporation. It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

tax

WHO COLLECTS PROFESSIONAL TAX

Professional tax is collected by the employers from the monthly salaries and then paid to the government. If employers does not deduct professional tax and pay it to govt. than, They can have penalties imposed on them for not collecting or failing to pay the professional tax. If you are not working for anyone then you are liable to pay the professional tax yourself.

STATE WISE APPLICABILITY:-

States where professional tax is applicable: -
1. Andhra Pradesh
2. Assam
3. Bihar
4. Chhattisgarh
5. Gujarat
6. Jharkhand
7. Karnataka
8. Kerala
9. Madhya Pradesh
10. Maharashtra
11. Manipur
12. Meghalaya
13. Mizoram
14. Orissa
15. Pondicherry
16. Tamil Nadu
17. Tripura
18. West Bengal
19. Telangana

States where professional tax is not applicable :- 1. Arunachal Pradesh
2. Haryana
3. Himachal Pradesh
4. Jammu & Kashmir
5. Puducherry
6. Rajasthan
7. Nagaland
8. Uttaranchal
9. Uttar Pradesh
10. Andaman & Nicobar
11.Chandigarh
12. Dadar & Nagar Haveli
13. Daman & Diu
14. Delhi
15. Lakshadweep
.

Required_Documents

DOCUMENTS REQUIRED

Our Packages for Professional Tax Registration

packages

BASIC

All Inclusive Fees

1,699

PRO

All Inclusive Fees

3,899

PREMIUM

All Inclusive Fees

5,899

Procedure of Professional Tax Registration

Step - 1

The persons falling under the provisions of professional tax and the employers employing staff for their business need to obtain registration, within 30 days of becoming liable under the provisions of professional tax, from appropriate department designated for compliance of professional tax in a particular state. Person liable for pofessional tax registration can apply online on the official portal of commercial or professional tax department of respective state in which he/she is liable to pay tax.

FAQ

Most frequent questions and answers
faq

 Any person who is engaged in any profession, Trade, callings and employment in the
State of Maharashtra is liable to pay Profession Tax. A person includes Hindu undivided
family, firm, company, corporation or other corporate body, any society, club or
association

Yes, Holding of AGM is mandatory to increase authorised share capital.

There are two types of registration. 1. E.C. : Enrollment Certificate – Every person liable to pay tax under this Act (other than a person earning salary or wages, in respect of whom the tax is payable by his employer) shall obtain a certificate of enrollment from the prescribed authority in the prescribed manner. 2.R.C. : Registration Certificate – Every employer not being an officer of Government liable to pay tax under section – 4 shall obtain a certificate of registration from the prescribed authority

 The amount of Profession Tax payable by a person is mentioned in the Profession Tax Schedule of respective state.

Yes, there is a facility of making lump sum payments for Enrolment Certificate holder who is liable to pay tax at the rate of Rupees 2500 per annum.

Request Quotation/Call Back From Startup Specialist