Tax Audit Report

Registration Of Professionals Tax In Chennai

Governments use professional taxes as revenue sources to improve the services for professionals in their state. As a result, it is essential for employers to deduct professional tax from salaries, even though there are some exemptions. Professional tax in India varies depending on the state.
In order to calculate professional tax, you must calculate your gross salary every month. If you have a monthly salary of Rs. 50,000, and after deductions for your EPF, gratuity, leave, or any loan that you may have taken from the company in the past, your gross salary is Rs. 40,000.

The Benefits of Professional Tax Registration in Chennai

Professional Taxes contribute to the welfare and development of the region by generating revenue to the state governments.

  • You can avoid being charged
  • Put an end to wage garnishment
  • Pay off your outstanding tax debts
  • Don’t get caught up with past returns
  • Auditing assistance
  • Avoid losing your credit score by paying your bills on time
  • Enjoy greater peace of mind
  • Income and Asset Protection
  • Helps you understand tax laws
  • Describes the entire process of IT to you


In order to be registered with the State professional tax authority, one must carry on a profession or trade and hire staff. Moreover, it would be the employer’s responsibility to deduct professional tax from an employee’s salary, remit it to the government, and file timely professional tax returns for the employee.

Considering registering for professional tax? Do you own a private setup that has professionals working for it? If so, then you must hire a tax consultant in Chennai that can register your company.

Every employee has to pay up a fixed amount of professional tax and the amount depends on the salary of the employee. Even though the employee has to pay it, it is your responsibility as their employer to ensure that the tax is withheld from their salaries and paid to the government.

If you do not register for professional tax registration in Chennai within 30 days of hiring the staff for your company, you may be subject to a penalty of Rs. 5 per day if you do not do so. Our consultants at Chennai Filings will ensure a hassle-free registration process for you, whether you are late or just starting up a new company.

Is It My Responsibility To Deduct & Pay Professional Tax?

The employer is responsible for deducting and paying professional tax to the State Government on behalf of employees according to the monetary threshold set by the respective State’s Professional Tax Act.

As a person carrying on trade or profession (corporations, partnership firms, sole proprietorships, etc.), employers (corporates, partnership firms, sole proprietorships, etc.) are also required to pay professional tax on their trade or profession, subject to the monetary thresholds, if any, prescribed by the state’s professional tax law. To pay professional tax on his trade or profession, the employer must register and obtain a Professional Tax Registration Certificate and a Professional Tax Enrolment Certificate before he can deduct the taxes from his employees and pay them to the government. Depending on the respective State’s legislation, each office may also need its own registration.

Individuals carrying on freelancing business without any employees must also register for professional tax, and they are subject to the monetary threshold provided by their respective states.

In Chennai, how do you file your professional tax?

When you register for GST, you will have to add 10% to your prices and, at the same time, you can claim GST credits for goods and services you purchase for your business. If you do not register, you will not be eligible for these credits.

1. When a business owner has employees in different states, then he or she should get a professional tax registration for each of the states. States have different tax slabs.

2. Depending on the state where one resides, one will need to file returns on a regular basis. If you want to file a return, you should be aware of the state’s rules. For all those individuals and businesses that are required to pay professional taxes,

3. it is imperative to register as a payee of professional tax in that state. Calculate the professional tax payment on the prescription form.

4. In the case of employees, the employer has to deduct their salaries for professional tax. The payments and calculations must be audited by a chartered accountant. Upon registration, an individual is then liable for Professional Tax. PT rates differ for different online professional tax payment

Frequently Asked Questions

Is it possible to pay Profession Tax online? 

The preferred method of paying Profession Tax is through the GRIPS portal. For this, go to > e-services > e-payment > GRIPS. As of 1-10-2014, payment of Profession Tax shall be mandatory through GRIPS. Once an employer has obtained a Certificate of Enrolment, he or she must pay the tax against the registration number [except under the ‘Amnesty Scheme’, where taxes, as outlined in section 5(C), are payable before/while applying for registration for previous liabilities up to 31-3-2014.

When is an employer liable to pay tax?

The date of liability will be the date on which the employee’s salary/wages are first paid to the employer within the taxable limit. 

How does GST apply to professional tax?

If an establishment or individual earns more than *15,000 per month, professional taxes are imposed at a maximum of *2,500 a year. After the other taxes were subsumed in the GST regime, the State government administers only professional tax (along with Karnataka Sales Tax).

Is professional tax refundable?

PT is deductible u/s 16(iii) to the extent it is paid in an FY, irrespective of how long it has been paid. So in this case, you can claim this deduction for the following year.

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