Professional Tax Registration
Professional Tax Registration Online in India
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Plans start from
Rs. 6,999/-
Who is required to obtain professional tax registration online?
In India, all types of trades and professions are subject to professional tax. Every employee of a private firm operating in India must pay the tax. All business owners are responsible for registering for professional tax as well as paying it.
Self-employed professionals must pay the professional tax if they receive a regular monthly income. A professional is someone working in a specialized area, such as accountancy, media, etc.
Got Queries?
As per the following timeline, your selected plan will be processed
Day 1-2
We collect necessary information & documents.
Day 3-4
We prepare all the requirements for application.
Day 5-6
We proceed to submit the application to the respective State Authority.
Finally
Government processing time.Issuance PT registration Certificate
Professional Tax Registration Online: An Overview
The State may impose a professional tax on income earned by profession, trade, or employment. It was first imposed in India in 1949, and the power to levy Professional Tax has been given to the State under clause (2) of Article 276 of the Constitution of India. Depending on the income of the individual, this tax is levied at different slab rates. Professional Tax registration online will provide a flexible option for the employer to comply with state authorities.
The state government collects the professional tax, as opposed to the central government, which collects Income Tax. Each State has its own professional tax rules. Since the rules differ from State to State, each State can set its limits and rates. However, the maximum amount limit has been increased to Rs.2500 per year. Various salary slabs apply to the levying of a professional tax in different states.
What are the benefits of Professional tax registration online?
Nominal Tax
Members are only liable for the number of shares they hold. In the event of any loss to the Company, shareholders may be responsible only for their claims. No shareholder's assets are at risk.
Avoid paying penalties
In the absence of professional tax registration, huge penalties continue to cascade over time.
Ensure compliance
Ensures compliance with state laws and keeps your business running smoothly
Claim Deductions
Depending on the professional tax paid, deductions can be claimed from salaries. You will receive a deduction for the payments made in the year that you made them.
What is the applicability of the Professional Tax Registration Online?
Firms/Companies/LLPs
The professional tax applies to firms, LLPs, corporations, societies, HUFs, associations, clubs, and companies. A branch involved in all of these will also be considered a separate individual under the professional tax.
Individuals (Professionals)
Professional individuals who need to pay professional tax include legal professionals such as notaries, solicitors, physicians, managers, tax consultants, surveyors, company secretaries, chartered accountants, insurance agents, engineers, architects, and contractors.
Partners and Directors
Those serving as company directors, partners in firms, LLP partners, or designated partners should pay professional tax. As soon as they are appointed to these roles, they should register under the professional tax act.
Employers
By registering on the government’s portal, the company/firm must obtain a professional tax enrollment certificate (PTEC) within 30 days of incorporation.
30 days from the day they hire a new employee, the company/firm must get a professional tax registration certificate (PTRC). The employer is required to deduct professional tax from each employee’s salary and submit it to the professional tax department with the return.
List of Documents Required for Company Registration in India
- ID proof of Director/ Partner/ Proprietor
- Address proof of Director/ Partner/ Proprietor.
- Shop and Establishment Certificate(if any)
- Passport size photograph of the Director/ Partner
- MoA & AoA (if applicable ) with Incorporation Certificate
- PAN Card of Director/ Partner/ Proprietor
- Salary details of employees
- Cancelled Cheque and Bank Statement (as applicable)
Here Are Some Frequently Asked Questions
How do professional taxes and income taxes differ?
The central government collects income tax directly from all taxpayers. Their income is calculated based on a certain percentage. In contrast, the professional tax is an indirect tax collected by the state government. Taxes are based on a slab for people engaged in business, occupation, or employment.
Who is required to obtain professional tax registration online?
In India, all types of trades and professions are subject to professional tax. Every employee of a private firm operating in India must pay the tax. All business owners are responsible for registering for professional tax as well as paying it.
Self-employed professionals must pay the professional tax if they receive a regular monthly income. A professional is someone working in a specialized area, such as accountancy, media, etc.
Who should be registered for professional tax?
When salaried employees are liable to pay professional tax, the employer is obligated to register and deduct the tax from the employee’s salary and deposit it into the state government’s account.
If you are self-employed, you must register and pay professional tax quickly and accurately if covered under the professional tax.
Employers/Individuals must ensure to obtain a professional tax registration online or with the authorities.
Is it mandatory to pay professional tax?
Professional tax is a mandatory tax, and there are penalties and fines in case of non-compliance.
Which states impose a professional tax?
Punjab, Bihar, Karnataka, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Sikkim, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh.