Professional Tax Registration
Professional Tax Registration
Professional tax is a tax that is levied by a state government on all individuals who earn a living through any medium. This should not be confused
with the definition of professionals that indicates people such as doctors. This is a tax that is to be paid by every single earning individual. The
calculation and amount collected may differ from one state to another. The owner of a business is responsible to deduct professional tax from the
salaries of his employees and pay the amount so collected to the appropriate government department.
Professional Tax Registrations across India
Documents Required for Professional Tax Registration
Pvt. Ltd. /Public Ltd. /OPC
- Company PAN card
- MOA, AOA & Incorporation Certificate
- Rental and EB Card
- Directors PAN / Aadhaar Card
- Mobile No & Mail Id
- Employees Details
- Property tax bill
LLP & Partnership Firm
- Firm PAN card
- LLP Agreement/ Partnership deed
- Rental and EB Card
- Partners PAN / Addhar Card
- Mobile No & Mail Id
- Employees Details
- Property tax bill
Proprietorship Firm
- Proprietor's PAN card
- Any one License
- Rental and EB Card
- Addhar Card
- Mobile No & Mail Id
- Employees Details
- Property tax bill
Benefits of Professional Tax Registration Online
Following are the reasonable factors why should one never miss professional tax:
- Paying a professional tax is a judicial requirement and if any individual avoiding it can be reliable for the penalty or legal issues and self-employed individual and employer should also pay their professional tax depending on their rates or wages provided by their respective state within the prescribed time.
- Professional tax is simple and easy to comply with. Rules and regulations governing professional tax enforce minimal restrictions and it is very simple to get registered with uncomplicated monthly or annual compliances.
- The deduction can be laid claim of earlier paid professional tax.
- Being a state tax, the Professional tax a local tax authority’s obligation to get the professional tax deducted from fees of the professional, business income, and salary.
Professional Tax Applicability
The Professional tax is applicable to the following class of individuals in states where they are working:
- HUF
- Individual
- One person Company/Private/Public
- Co-operative Society
- Body of Individuals
- Association of Person
Consequences of Violation of Professional Tax Regulation
Individuals who fail to submit their professional tax is levied for the penalty. All states enforce a penalty for individual who is not registering professional tax even after it has become applicable. The amount of penalty for not submitting the professional tax varies from state to state. A penalty of Rs5/- a day is applicable on late in getting the registration of professional tax certificate. For non/late payment of profession tax, the penalty of 10% of the amount of tax with is imposed. In case of late filing of returns, an individual has to pay Rs.1000 of penalty and after a month, a penalty will be increased to Rs.2000.
