Professional Tax

Professional Tax

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Professional tax registration for employers having less than 20 employees.


Professional tax registration for employers having less than 40 employees.


Professional tax registration for employers having more than 40 employees.

Professional Tax Registration

What is a professional tax?

Professional Tax is a tax paid by the state government, which is levied on the proceeds of the trade and levied by the employer. A person must pay professional tax amounting to Rs.2500 annually to the government or to any local authority in the form of employment tax, trade, telephone, and services.

Professional tax in India is not only taxed by professionals but also levied on all employees, business persons, freelancers, professionals, etc., and is less than the income limit if it exists.

Professional tax is a type of tax levied by the state government. The state government is also empowered to legislate for professional taxes even though it is a tax on income under Article 276 of the Indian constitution which deals with employment taxes, trade and telecommunications, and employment. It may be noted that employment tax is a deductible amount and may be deducted from taxable income.

Professional taxes are like income tax, but the federal government and labor tax collect taxes that are owned by the state government. At the time of presentation, the maximum tax to be collected as the professional tax was Rs. 250. There has been a high professional tax review of Rs. 2500 and allow the government to increase additional resources.

Who Should Pay a Professional in India?

Expert Tax in India applies to individuals and organizations mentioned herein:
  • Companies
  • Firms
  • Limited Debt Partnerships
  • Organization
  • Communities
  • The Separate Hindu Family
  • Organizations
  • Clubs
  • Legal Professionals
  • Contractors, Architects
  • Engineers
  • Insurance Agents
  • Chartered Accountants
  • Company Secretaries
  • Examiners
  • Tax advisers
  • Management Specialists and Medical Representatives such as doctors, etc.

Who is exempt from paying professional tax in India?

  • Former employees
  • People serving in the Central Para Military Force (CPMF)
  • People in charge of educational institutions teaching up to 12th grade
  • Disabled with at least 40% disability. The relevant Certificate must be submitted.
  • Any person with a three-wheeled vehicle or one taxi to carry goods.
  • The deaf, the dumb, and the blind lead.
  • Citizens and non-members of the armed forces.
  • Foreign experts employed by the government

Employment tax penalties vary from state to district. Also, there is a penalty for not registering. In addition to the penalty for non-payment, there is also a refund penalty.

Documents required to register professional tax in India

  • Online form information, and digital print form submitted.
  • Copy of PAN Card.
  • Proof of accommodation of Partner, Director, Owner.
  • Constitutional proof of a business such as the Import Certificate.
  • Meeting Memorandum
  • Organization Documents
  • Enter the business location proof of address.
  • Empty Canceled Check.
  • Certificate of Establishment.
  • Details of PAN and PTEC.
  • Statement of current account
  • Commercial auction title deed if the property is commercial and the NOC from the landlord is leased.

Employment Tax Registration

The process of professional tax registration varies from region to region, slab prices may vary from region to region, where the business owner has staff employed in different provinces where one has to obtain professional tax registration in all provinces.

An application for registration of employment tax must be submitted to the state tax office within 30 days of hiring employees in the business. If there is more than one workplace the application should be made separately to each manager taking into account the work environment under the authority of the authorities.

In the event of a delay in payment of employment tax, there is a fine of Rs 5 per day, with a penalty of non-payment of 10% tax.

Reimbursement frequency: The frequency with which a person must complete refunds also depends on the circumstances in which he or she lives, so before submitting refunds it is very important to know the rules of a particular region.

Which provinces levy professional taxes in India?

The maximum amount that each person is required to pay as employment tax is Rs.2500. The amount of tax is based on the total income of the specialist. It is possible for an employer to be deducted from his or her monthly income. Here is a list of the regions where the technical tax is levied.

  1. Andhra Pradesh
  2. Assam
  3. Bihar
  4. Chattisgarh
  5. Gujarat
  6. Karnataka
  7. Kerala
  8. Madhya Pradesh
  9. Maharashtra
  10. Manipur
  11. Meghalaya
  12. Mizoram
  13. Orissa
  14. Puducherry
  15. Tamil Nadu
  16. Tripura
  17. West Bengal

Here is a list of regions where employment tax does not apply

  1. Arunachal Pradesh
  2. Delhi
  3. Goa
  4. Haryana
  5. Himachal Pradesh
  6. Jammu and Kashmir
  7. Jharkhand
  8. Nagaland
  9. Punjab
  10. Rajasthan
  11. Sikkim
  12. Uttar Pradesh
  13. Uttaranchal
  14. Andaman and Nicobar
  15. Chandigarh
  16. Daman and Diu
  17. Dadra and Nagar Haveli
  18. Lakshadeep

Why does professional tax differ in a different case?

As the national government imposes a job tax, it varies from district to district. Each region declares a slab, and a service tax is levied based on these slabs. Many provinces and union areas do not charge any technical tax. Professional tax is payable in 12 equal installments, in such cases where the source of revenue falls below the categories to which they will be responsible for different taxes.

Since each country has its own professional tax laws and regulations, professional taxes vary from region to region. However, the slab system is followed by all provinces. The slab plan is based on an individual’s income. Therefore, the national government imposes a tax on income based on income.

Types of Professional Tax Certificates

There are two types of professional tax certificates:

PTEC (Professional tax registration certificate): This is paid for by a business company, owner, or professional ie Private or Public Limited Company, sole proprietor, Director, etc.

PTRC (Professional Tax Registration Certificate): A government or non-government employer deducts tax from an employee’s income and deposits it with the government.

Frequently Asked Questions

In India, Income Tax is calculated on salary slabs. Under the minimum wage, there is no tax. The maximum amount paid as Professional Tax is Rs.2500 per year. Tax rates vary from region to region.

Professional Tax appears at the top of the payslip as it is deducted even before calculating income tax. The employer removes it from the employee’s salary and submits it to the National Government.

Professional Tax is a mandatory tax paid by everyone, and there are penalties in case of non-compliance.

Technical Tax Laws vary from region to region. Since laws vary from state to state, each country can set limits and standards. But the maximum price limit was upgraded to Rs.2500 per year. The salary slab structures for Professional Tax billing vary from province to province.

Professional tax is a state-level tax on income from employment, trade, telephone, or employment. Taxes are based on the income of a person who is either self-employed or who works as a business person.

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