Professional Tax Registration

Professional Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors.

  • Data Check

    We do a thorough check of the files you send in

  • Vendor Connect

    We will appoint an affiliate to process your application

  • Receipt of Tax Number

    The TIN will be issued within 15 days of the application

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Online Professional Tax Registration - An Overview


Professional tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers, and doctors.

Vakilsearch provides assistance with

Data Check

We do a thorough check of the files you send for professional tax registration

Vendor Connect

We will appoint an affiliate to process your application

Receipt of Tax Number

The TIN will be issued within 15 days of the professional tax registration

How to apply for Professional Tax Online?


Professional Tax Applicability


Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same

Professional tax variation with each state

Professional tax payment will always have distinct rates that keep varying from state to state. The state governments which are levying state tax are West Bengal, Maharashtra, Karnataka, Kerala, Assam, Madhya Pradesh, Orissa, Tripura, Meghalaya, and Gujarat.

Professional tax for self-employed

Any professional who gets a regular income on a monthly basis will have to pay the professional tax. By the term professional, we imply people working in specialized fields like accountancy, media, medicine, information technology, media, etc.

Professionals offering freelance services also need to pay professional tax using a special type of form. They can fill the form and get a registration number first. Then, using that number, they can pay their taxes in the corresponding banks.

In certain states in India, specifically , Maharashtra Profession Tax Act amended from 1.4.2018, Now a Limited Liability Partnership and each partner of LLP shall be liable to pay PT of Rs. 2,500/- per annum.

Exemption from professional tax payment

The following individuals are exempted to pay professional tax:
- Parents of children with a permanent disability or mental disability.
- Members of the armed forces, including members of auxiliary forces or reservists, serving in the state.
- Individuals, over 65 years of age.
- An individual who is physically challenged (also visually challenged).
- Women exclusively engaged as agent under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
- Parents or guardians of individuals who are mentally challenged
- Badli workers in the textile industry.

Why pay Professional Taxes? Benefits


Here are the reasons why one should never miss a professional tax payment

It is a judicial requirement

As per the rules and regulations of India, every employee is bound to make the professional tax payment without fail. Employers in many states of India are strictly bound by the judiciary to obtain the registration of professional tax. After the registration, they have to make the deductions and pay the service taxes of all the employees who work under them.

To avoid paying penalties

Failure to professional tax registration results in huge penalties that keep on increasing over time.

Easy to comply

When something is easy to comply, it won’t be difficult to follow. The professional tax regulations are so easy to follow that and not difficult to comply with. The registration procedures can be done quickly and the further proceedings are also much easier.

Deductions

Deductions can be claimed in the salary on the basis of the professional tax paid. The deductions will be allowed in the year corresponding to which the taxpayer made the payments.

The State Government Tax

The local authorities and the state government have the right to collect all the professional taxes based on employment, profession trades and much more. The collected amount of professional tax per annum should not go beyond Rs. 2500 per an annum.

Professional Tax Registration Process in India


The professional tax registration procedure is very easy. Here are three important points that one needs to know and understand in detail.

Varies according to state

In case you are a business owner and have employees under different states working for you, then you will have to get a professional tax registration for all the states. The tax slab rates can vary from one state to another. This can make it a cumbersome task for small-scale industries. Many states in North India do not have professional taxes.

The frequency of filing returns

The frequency with which one needs to file returns will depend on the state the person resides in. Hence, before filing for a return it is important to know the rules of the state.

The penalties that await

The Maharashtra government, for instance, can levy a penalty of about 10 percent the amount which was delayed. Hence, the more one avoids paying the registration, the more they will have to worry about the penalties.

Documents required for Online Professional Tax Registration


Here is a list of documents required to register for professional tax:

  • Certificate of Incorporation, including MOA & AOA / LLP Agreement.
  • PAN card of Company/LLP which is attested by the company director
  • Place of business proof along with a NOC from the owner of the premises
  • Bank account of the company including bank statement and cancelled cheque.
  • Passport size photographs, address and identity proof from all the directors
  • Board resolution or in other words, the statement of consent by the partners.
  • Shop and establishment certificate
  • Salary register and attendance register

Steps involved in Online Professional Tax Registration


One working day

Within one working day, you will have to provide your PAN card, address proofs and identity proofs of all the directors/partners/proprietors of the company. You also need to furnish the details of all employees working under you.

Two working days

The application form for professional tax will be then filled up by the employees and then submitted to the concerned authorities by our expert affiliates. If the documents are all provided in order, then the process will not take more than two working days.

Seven working days

Within five to seven working days, the basic acknowledgment will be provided by us. In case the documents are not in proper order, the inspector will ask for the missing documents. As soon as you provide the missing ones, the process will be completed. The registration hard copy will be issued with 10 days in all the major cities. In other places, it might take up to 15 to 20 working days.

How can we help with Professional Tax Registration? Why Vakilsearch?

We at Vakilsearch are ready to assist you whenever you need. Here are some of the ways in which we can help you with online Professional Tax Registration:

Preparing the application

It can be a muddling task to prepare the application as the terms and formalities can be a bit difficult to comprehend. Our professional tax experts do a proper assessment of the business and prepare a document for tax application with the government of the respective state.

Filling out the application form

Our experts will then fill the form and submit the duly signed form with the concerned department in the respective city or town.

Registration process

The submitted application will then be scrutinized in detail by the particular state government. Once found to be proper and perfect, the professional tax registration will be done.

Why Vakilsearch


50 Verified Vendors

We've tied-up with some of the best vendors in major cities of the country to get you your Professional Tax Registration. We've completed 500+ registrations in the past 12 months.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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