PROFESSIONAL TAX REGISTRATION

PROFESSIONAL TAX REGISTRATION CERTIFICATE AND COMPLIANCE

Professional tax is a direct tax levied on persons earning an income by either practicing a profession, employment, calling, or trade. Unlike income tax imposed by the Central Government, professional tax payment is levied by the government of a state or union territory in India. In the case of salaried and wage earners, the professional tax is liable to be deducted by the Employer from the salary/wages, and the same is to be deposited to the state government. In the case of other classes of individuals, this tax is liable to be paid by the employee himself. The tax calculation and amount collected may vary from one State to another, but it has a maximum limit of Rs. 2500/- per year. To comply with these rules, the P tax registration must be completed by the respective entity without fail.

PROFESSIONAL TAX APPLICABILITY

This tax is levied on all kinds of professions, trades, and employment. Professional tax payment is applicable to the following classes of persons:

• ● An Individual
• ● A Hindu Undivided Family (HUF)
• ● A Company/Firm/Co-operative Society/Association of persons or a body of individuals, whether incorporated or not

The professionals earning an income from salary or other practices such as a lawyer, teachers, doctors, chartered accountants, etc. are required to do P tax registration, obtain P tax certificate and pay professional tax.

WHO PAYS PROFESSION TAX?

In the case of Salaried and Wage-earners, the Professional Tax is liable to be deducted by the Employer from the Salary/Wages, and the Employer is liable to deposit the same with the state government.

Self-employed persons who carry out their profession or trade on their own and fall in the ambit of profession tax are liable to pay the tax themselves to the state government. This class of people must done the registration and obtain Professional tax number.

PROFESSIONAL TAX REGISTRATION CERTIFICATE AND COMPLIANCE

P Tax registration for professionals is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice.

• ● Application for a P tax certificate should be made to the assessed state tax department within 30 days of employing staff for his business.
• ● If the assessee has more than one place of work, then the application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.

DUE DATES FOR PROFESSIONAL TAX PAYMENT

If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).

PROFESSIONAL TAX RETURN

The Professional Tax Return is to be filed by all the persons who are subject to professional tax and the due dates for filing of such returns vary from State to State.