Overview |
Exemptions |
Applicability |
Responsibilty |
Compliance |
Documents Required |
Compliance
Businesses should take the registration certificate within 30 days from the date of applicability of the tax. The business which requires to deduct professional tax from the salary of the employees is required to obtain a Professional tax Registration Certificate. The sole trader, freelancers, professionals who do not require to deduct tax for others, but are required to pay for themselves are required to obtain Professional Tax Enrollment Certificate.
The maximum amount which can be deducted from salary in the name of professional tax is Rs 2500.
The professional tax registration procedure varies according to state: The tax slab rates can vary from one state to another, where the business owner have employees under different states, then one have to get a professional tax registration for all the states.
Frequency of filing returns: The frequency with which one needs to file returns will depend on the state the person resides in. before filing a return it’s important to know the rules of the state.
Get registered as a payee of professional tax in a local professional tax office at that specified state.
When it comes to employees, the employer has to deduct the salaries of employees for the professional tax.
Once the person gets registered, he is then responsible to pay Professional Tax; different professions are specified with different PT rates
Overview
Professional Tax is a state tax levied on the income of the professional. It is also levied on trade, professions, freelancers and callings. The tax is levied based on income but is levied by state governments. The tax on income is a central subject, hence only states are empowered to make laws on profession, trade and callings. It is pertinent to note that, even though the professional tax is based on the income of the professionals but this is not an income tax. The tax is collected by the commercial tax department of various states and it ultimately reaches the municipal corporation funds
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