It is a tax that state governments collect from professionally occupied business entities. Professional tax must be paid by individuals who earn income from salaries or professions such as Chartered Accountants, Company Secretaries, Lawyers, etc. For the purpose of this registration, employers, professionals, traders, etc., are subject to registration.
An employer’s salary is deducted for this tax, which can then be deducted when calculating taxable income. The registration is obtained by the employers and business owners with respect to Municipal Corporations. The rate of tax and the method of registration are different since it is a State-based registration, and there are two types of registrations – PTEC and PTRC.
In India, Professional Tax Registration has Many Benefits
- Comply with all laws
- Maintains your company’s active operation and legal compliance.
- Prevent penalties from being imposed
- The employer and employee are protected from heavy penalties.
- Payables are nominal
Since taxes are deducted by the state government on a salary range, the tax burden on taxpayers is minimal.
A list of the Documents Necessary for Professional Tax Registration
ID proof
Proprietor/partner/director’s self-attested identification proof
Proof of identity
Proprietor/partner/director’s self-attested identification proof
Verification of address
Copies of the owner’s, partner’s, or director’s self-attested address proofs. A copy of the shop’s and establishment’s certificate (if any).
The photographs
Proprietor/Partner/Director’s three passport-size photographs
Documents relating to incorporation
Company Agreements, Partnership Deeds, LLP Agreements, etc. along with registration certificates if any
Online Professional Tax Registration Process
- First day
- Consultation Requirements
- Information Collection
- Please provide the required documents
- The second and fourth days
- Registration application preparation
- Registration for professional tax purposes
- Onwards to day 5
- Departmental processing
- The 15th day
- Certificate of Tax Registration for Professionals
Frequently Asked Questions
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How do I obtain a Professional Tax Registration?
Obtaining a registration is the responsibility of the business or professional owner.professional tax certificate must be deducted from the salaries of employees based on the professional tax slab, and it must be paid to the government by the 15th of each month or quarter, as applicable.
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Why do I need an enrolment certificate?
Employers obtain the Professional Tax Enrolment Certificate (PTEC) for the purpose of paying taxes.
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Registration certificates are what they sound like, but what are they?
Employees are entitled to deduct the professional tax from their salaries when the employer gets the registration within 30 days of hiring them.
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Professional Tax is applicable in which states?
Among the states that have levied professional taxes are:
Among the states that make up the region are Bihar, Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Sikkim, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh.
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Does Professional Tax have a maximum amount?|
Professional tax is usually deducted every month from the employee’s income and is based on their gross income. The maximum amount payable to the professional tax is *2,500 per annum.
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