Professional Tax is a state-level tax levied by government of India India on salaried employees and professionals, including CA, lawyers and doctors. Registration to be taken within 30 days of its applicability under Article 276 of the Constitution of India.There is a ceiling on the maximum amount of professional tax, which may be levied by the State Governments, which is rupees two thousands and five hundred at present. It is compulsory for an employer to deduct professional tax from the salaries of employees employed in the establishment and deposit the collected amount to the tax department of the State Government.
State in which Professional Tax is applicable:
Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh.
Professional Tax Deduction Slab:
The maximum amount payable per annum towards professional tax is Rs. 2,500. It is deducted from his/her monthly salary by Employer or from Monthly Income in all other cases. Professional Tax deduction monthly slab varies depending on salary /income range and applicable state.
Professional Tax Payment date :
As Professional tax is deducted has to be deposited within the due date. Due date of deposit varies state to state.
Professional Tax Return filing:
Returns to be filed monthly/half yearly or annually depending on state of applicability within the due date.
Is there any Return to be filed ?
Yes. Returns to be filed monthly/half yearly or annually depending on state of applicability within the due date.
The professional tax is a source of revenue for the State Government which helps them in implementing schemes for the welfare and development of the region.
Documents requirement for Professional Tax Registration
PAN Copy of the Entity
Address Proof of the Entity
Address proof of partners, proprietor or directors as applicable ( Aadhar/Passport/Voter ID/Driving License)
PAN of partners, proprietors and directors
Photo of partners, proprietors and directors
Salary details of employees
Copy of Certificate of Incorporation, Memorandum & Articles of Association
Certified true of the resolution passed by the Board for Professional Tax registration