Professional tax is imposed on all salaried people and is regulated by the state governments. Professional tax is applicable to all employed professionals, including chartered accountants, attorneys, and physicians. It is determined by the person’s profession, trade, or occupation. Although tax rates vary from state to state, the maximum amount that can be imposed as professional tax is $2500 per year. Let’s discuss professional tax registration online.
Eligibility
Application of professional tax: All trades and professions are subject to professional tax in India. It must be paid by each employee of a private business doing business in India. Every firm owner is accountable for professional tax registration, as well as professional tax payments and deductions.
Professional Tax for the self-employed: The professional tax must be paid by any self-employed professional who receives a regular monthly salary. People who work in particular professions, such as accountancy, the media, and so on, are referred to as “professionals.”
Who Must Pay Online Professional Tax but Not Others?
- Professional tax exemptions are only available to a select few individuals, and they differ depending on the state in which you reside. Individuals exempt from professional taxation are those who fit the following description:
- Employees of Badli in the textile sector who are exclusively working as agents for modest savings or Ms. Pradhan
- Armed forces personnel
- people who have physical limitations that are permanent
- State differences in age
- Kshetriya Bachat Yojana (Kshetriya Bachat Yojana) is a government-sponsored program for parents or guardians of people with mental disabilities who work in the textile industry.
- Benefits
- Here are a few justifications for never skipping a professional tax payment.
- Legal requirement: The judiciary in several Indian states mandates that employers register for professional taxes. Once they have registered, they are required to withhold and pay service taxes from all subordinate employees.
- Prevent paying fines: Significant fines that rise over time occur from failing to register as a professional taxpayer.
- Simple to understand: Following professional tax guidelines is easy. The registration processes are quick to complete, and the next steps are likewise made simple.
- Deductions: Salary might be reduced by the amount of professional taxes that have been paid. The calendar year in which the contributions were made will qualify for the deductions.
- State government tax: Both local and state governments have the power to levy all types of professional taxes, including those that are determined by a person’s employment, skill level, and other variables. Professional taxes should not be collected in excess of $2500 each year.
Documents Proof of office location
- With a NOC from the property owner; Proof of corporate bank account with a bank statement and a voided check; Required: PAN card of the firm/LLP certified by the company director;
- Board decision or partners’ statement of approval
• Shop and establishment certificates; • Salary and attendance records from each director; • Passport-size photos, address proof, and identity proof from each director;
• Board resolution; and
• A statement of approval from the partners.
Process for Online Professional Tax Registration
- Step 1: Each director, partner, and owner of the business must show their PAN card, proof of address, and identification.
- Step 2: You must give all personnel information.
- Step 3: Workers must finish the application for professional taxes.
- Step 4: Our knowledge will send it to the proper authorities.
- Step 5: Within 5 to 7 business days, we will email you a basic acknowledgment.
- Step 6: The registration hard copy will be issued in all major cities within 10 days.
- Step 7: In other places, it can take up to 15 or 20 working days.
Knowing How to Apply for Online Professional Tax Registration
Firms/Companies/LLPs
In the context of professional tax, firms, LLPs, corporations, societies, HUFs, associations, clubs, and companies are all regarded as taxable entities. All of the involved branches will be treated independently under professional taxation.
Individuals (Professionals) Professional individuals who are required to pay professional tax include medical representatives such as dentists, doctors, and medical consultants, as well as management and tax consultants, surveyors, company secretaries, chartered accountants, insurance agents, and engineers, architects, and contractors.
Directors and Partners
Company directors, business partners, LLP partners, and designated partners are all responsible for paying professional tax. They must register with the professional tax authorities within 30 days of accepting these positions.
Employers
Within 30 days of establishment, the business or entity is required to register on the government website for a professional tax enrollment certificate (PTEC).
The business/firm is required to have a professional tax registration certificate within 30 days of recruiting a staff member (PTRC).
- When submitting returns, employers must withhold professional tax from the wages of employees under their control and send it to the professional tax division.
- Employers must withhold professional tax from employees’ pay and submit it to the professional tax division when submitting returns. Within 30 days of the law’s passage, the employer must register with the professional tax department.
What are the Repercussions of a Professional Tax Offense?
All states will be penalized if they do not register once the professional tax legislation goes into effect, albeit the specific penal interest or penalty varies based on each state’s legislative board. If payments are not made on time or the return is not filed by the deadline, fines will also be imposed.
Getting the Application Ready
Because the terminology and laws are frequently challenging to understand, preparing the application may be challenging. After carefully examining the company, our knowledgeable tax specialists create a document for submitting a tax applied to the relevant state government.
Completing the Application
The appropriate city or town department will then receive the legally signed document that has been completed and sent by our specialists.
Registering Procedure
The applicable state government will then carefully review the application (s). Once it is found to be accurate, your professional tax registration is complete.
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