What are the benefits of working with a professional tax relief firm?

Last Updated at: April 21, 2020
252

Managing the finances of a company is no easy task. As you keep growing and expanding, this process will only get more complicated. Since most companies have to pay vast amounts of tax, they mostly take the help of professionals to file taxes. As per the Indian IT Act, there are several ways for big companies to receive tax relief. Similarly, even salaried professionals can earn tax relief by investing in the right entities. So, how do you make sure you save up on your tax? The only way to do so without facing any legal penalties is to take the help of a professional tax relief firm. Here’s a look at why you should consider an expert tax relief firm to ease your burdens.

  1. What is the Professional tax?

  2. Benefits of working with a professional tax relief firm

  3. Professional Tax Slab Rates

  4. Who collects Professional Tax?

  5. What is the procedure for professional tax online payment?

  6. What is the benefit of working with a professional tax relief firm?

 

What is the Professional tax?

Professional tax is one that is levied on all professions, forms of employment, and trade. The tax is not restricted to professionals alone and is collected based on the individual’s income. Therefore, employees, individuals who own businesses and even professionals are taxed under this umbrella term if their income exceeds a threshold. As per Article 246 of the Indian Constitution, the Parliament is the only body that can alter laws related to tax on profits. The professional tax, however, is levied by State Governments, and hence, they have the right to make laws about it. Article 276 of the Indian Constitution deals with tax on employment, professions, and trade. 

Benefits of working with a Professional Tax Relief Firm

  1. Professional help

You will never have to deal with all your tax-related issues on your own again. Since you have tax professionals helping you with your tax-related work, you will never be alone again when it comes to your tax woes!

  1. Reduce your overall balance

Most of the time, the total amount you have to pay the government includes additional penalties, fines, and interest. Working with a professional tax relief firm will help you file for relief which will help you reduce the amount you owe the government. Such firms evaluate your condition and then work out ways to help you reduce your penalties and fines. 

  1. Avoid losing your property due to seizure

In certain extreme cases, people end up losing their homes and other features due to their inability to pay their tax. When you work with a professional tax relief firm, you can ensure that this does not happen. They will work out ways for you to escape such situations and avoid such unfortunate incidents.

While these are the significant benefits that working with such firms provide, there are several other benefits too. Here’s a look at some of the other benefits they provide.

  • Avoid having your account levied
  • Stop tax wage garnishment
  • Settle all your outstanding tax debt 
  • Make sure you don’t get caught up on past returns
  • Assist with audits
  • Avoid loss of credit score due to unpaid dues
  • Enjoy more peace of mind
  • Protection of Assets and Income
  • Helps you interpret Tax Laws
  • Explains to you all the IT processes

Get Professional Tax Registration

Professional Tax Slab

Since the Professional tax is levied by various State Governments, every state has its own laws. However, every state follows a slab format for collecting Professional tax. As per Article 276, State Governments can levy Professional tax up to INR 2,500. 

Professional tax slab in Karnataka

Monthly salary up to INR 15,000 NIL
Monthly salary greater than INR 15,000 INR 200/month

 

Professional tax slab in Andhra Pradesh

Monthly salary up to INR 15,000 NIL
Monthly salary between INR 15,000 & INR 20,000 INR 150/month
Monthly salary greater than INR 20,000 INR 200/month

 

Professional Tax in Maharashtra

Up to INR 7,500 (Men) NIL
Up to INR 10,000 (Women) NIL
INR 7,500- INR 10,000 INR 175/month
Above INR 10,000 Normal months – INR 200/month

February-             INR 300

 

Professional Tax in West Bengal

Up to INR 8,500 NIL
INR 8,500-INR 10,000 INR 90/month
INR 10,000-INR 15,000 INR 110/month
INR 15,000-INR 25,000 INR 130/month
INR 25,000-INR 40,000 INR 150/month
Above INR 40,000 INR 200/month

 

Professional Tax in Madhya Pradesh

Up to INR 1.5 Lakhs NIL
INR 1.5 lakhs- INR 1.8 lakhs INR 125/month
Above INR 1.8 lakhs INR 212/month

 

Professional Tax in Tamil Nadu

Up to INR 21,000 NIL
INR 21,000-INR 30,000 INR 100/month
INR 30,000-INR 45,000 INR 235/month
INR 45,000-INR 60,000 INR 510/month
INR 60,000-INR 75,000 INR 760/month
Above INR 75,000 INR 1095/month

 

Professional Tax in Gujarat

Up to INR 5,999 NIL
INR 6,000- INR 8,999 INR 80/month
INR 9,000- INR 11,999 INR 150/month
Above INR 12,000 INR 200/month

Professional Tax in Odisha

Up to INR 5,000 NIL
INR 5,000-INR 6,000 INR 30/month
INR 6,000-INR 8,000 INR 50/month
INR 8,000- INR 10,000 INR 75/month
INR 10,000- INR 15,000 INR 100/month
INR 15,000- INR 20,000 INR 150/month
Above INR 20,000 INR 200/month

 

Who collects Professional Tax?

The Commercial Tax Department collects the Professional Tax. Every state has such a department that works on managing the Professional tax. After tallying, the aggregate amount goes to the municipality corporation fund. When it comes to companies, the employer may deduct and then pay this to the State Government. Similarly, corporate firms and companies, since they work in the field of trade or commerce, must pay professional tax if their income exceeds a particular amount. Therefore, the employer must register with the required agency and get the professional tax registration certificate. Freelancers also must register and pay Professional tax if their monetary benefit exceeds a threshold.

What is the procedure for professional tax online payment?

  • Go to the official website of the State agency related to the payment of professional tax
  • From the homepage, go to the Professional Tax tab
  • Once the page opens, choose between either a self-employed or registered employer
  • Now, enter the Professional Tax Registration Number you have been assigned
  • You can also search by using the name of your company, or your office
  • Next, choose the period for payment of professional tax
  • Specify the exact month and year time-frame
  • Then, enter the precise tax amount payable, and provide the necessary bank details
  • Choose the appropriate payment method and enter your mobile number
  • Click on Enter and then Submit
  • Go to the payment portal and make the required transaction
  • Once you make the payment, make sure to save the challan for all your future references

 

0

What are the benefits of working with a professional tax relief firm?

252

Managing the finances of a company is no easy task. As you keep growing and expanding, this process will only get more complicated. Since most companies have to pay vast amounts of tax, they mostly take the help of professionals to file taxes. As per the Indian IT Act, there are several ways for big companies to receive tax relief. Similarly, even salaried professionals can earn tax relief by investing in the right entities. So, how do you make sure you save up on your tax? The only way to do so without facing any legal penalties is to take the help of a professional tax relief firm. Here’s a look at why you should consider an expert tax relief firm to ease your burdens.

  1. What is the Professional tax?

  2. Benefits of working with a professional tax relief firm

  3. Professional Tax Slab Rates

  4. Who collects Professional Tax?

  5. What is the procedure for professional tax online payment?

  6. What is the benefit of working with a professional tax relief firm?

 

What is the Professional tax?

Professional tax is one that is levied on all professions, forms of employment, and trade. The tax is not restricted to professionals alone and is collected based on the individual’s income. Therefore, employees, individuals who own businesses and even professionals are taxed under this umbrella term if their income exceeds a threshold. As per Article 246 of the Indian Constitution, the Parliament is the only body that can alter laws related to tax on profits. The professional tax, however, is levied by State Governments, and hence, they have the right to make laws about it. Article 276 of the Indian Constitution deals with tax on employment, professions, and trade. 

Benefits of working with a Professional Tax Relief Firm

  1. Professional help

You will never have to deal with all your tax-related issues on your own again. Since you have tax professionals helping you with your tax-related work, you will never be alone again when it comes to your tax woes!

  1. Reduce your overall balance

Most of the time, the total amount you have to pay the government includes additional penalties, fines, and interest. Working with a professional tax relief firm will help you file for relief which will help you reduce the amount you owe the government. Such firms evaluate your condition and then work out ways to help you reduce your penalties and fines. 

  1. Avoid losing your property due to seizure

In certain extreme cases, people end up losing their homes and other features due to their inability to pay their tax. When you work with a professional tax relief firm, you can ensure that this does not happen. They will work out ways for you to escape such situations and avoid such unfortunate incidents.

While these are the significant benefits that working with such firms provide, there are several other benefits too. Here’s a look at some of the other benefits they provide.

  • Avoid having your account levied
  • Stop tax wage garnishment
  • Settle all your outstanding tax debt 
  • Make sure you don’t get caught up on past returns
  • Assist with audits
  • Avoid loss of credit score due to unpaid dues
  • Enjoy more peace of mind
  • Protection of Assets and Income
  • Helps you interpret Tax Laws
  • Explains to you all the IT processes

Get Professional Tax Registration

Professional Tax Slab

Since the Professional tax is levied by various State Governments, every state has its own laws. However, every state follows a slab format for collecting Professional tax. As per Article 276, State Governments can levy Professional tax up to INR 2,500. 

Professional tax slab in Karnataka

Monthly salary up to INR 15,000 NIL
Monthly salary greater than INR 15,000 INR 200/month

 

Professional tax slab in Andhra Pradesh

Monthly salary up to INR 15,000 NIL
Monthly salary between INR 15,000 & INR 20,000 INR 150/month
Monthly salary greater than INR 20,000 INR 200/month

 

Professional Tax in Maharashtra

Up to INR 7,500 (Men) NIL
Up to INR 10,000 (Women) NIL
INR 7,500- INR 10,000 INR 175/month
Above INR 10,000 Normal months – INR 200/month

February-             INR 300

 

Professional Tax in West Bengal

Up to INR 8,500 NIL
INR 8,500-INR 10,000 INR 90/month
INR 10,000-INR 15,000 INR 110/month
INR 15,000-INR 25,000 INR 130/month
INR 25,000-INR 40,000 INR 150/month
Above INR 40,000 INR 200/month

 

Professional Tax in Madhya Pradesh

Up to INR 1.5 Lakhs NIL
INR 1.5 lakhs- INR 1.8 lakhs INR 125/month
Above INR 1.8 lakhs INR 212/month

 

Professional Tax in Tamil Nadu

Up to INR 21,000 NIL
INR 21,000-INR 30,000 INR 100/month
INR 30,000-INR 45,000 INR 235/month
INR 45,000-INR 60,000 INR 510/month
INR 60,000-INR 75,000 INR 760/month
Above INR 75,000 INR 1095/month

 

Professional Tax in Gujarat

Up to INR 5,999 NIL
INR 6,000- INR 8,999 INR 80/month
INR 9,000- INR 11,999 INR 150/month
Above INR 12,000 INR 200/month

Professional Tax in Odisha

Up to INR 5,000 NIL
INR 5,000-INR 6,000 INR 30/month
INR 6,000-INR 8,000 INR 50/month
INR 8,000- INR 10,000 INR 75/month
INR 10,000- INR 15,000 INR 100/month
INR 15,000- INR 20,000 INR 150/month
Above INR 20,000 INR 200/month

 

Who collects Professional Tax?

The Commercial Tax Department collects the Professional Tax. Every state has such a department that works on managing the Professional tax. After tallying, the aggregate amount goes to the municipality corporation fund. When it comes to companies, the employer may deduct and then pay this to the State Government. Similarly, corporate firms and companies, since they work in the field of trade or commerce, must pay professional tax if their income exceeds a particular amount. Therefore, the employer must register with the required agency and get the professional tax registration certificate. Freelancers also must register and pay Professional tax if their monetary benefit exceeds a threshold.

What is the procedure for professional tax online payment?

  • Go to the official website of the State agency related to the payment of professional tax
  • From the homepage, go to the Professional Tax tab
  • Once the page opens, choose between either a self-employed or registered employer
  • Now, enter the Professional Tax Registration Number you have been assigned
  • You can also search by using the name of your company, or your office
  • Next, choose the period for payment of professional tax
  • Specify the exact month and year time-frame
  • Then, enter the precise tax amount payable, and provide the necessary bank details
  • Choose the appropriate payment method and enter your mobile number
  • Click on Enter and then Submit
  • Go to the payment portal and make the required transaction
  • Once you make the payment, make sure to save the challan for all your future references

 

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