Professional Tax Registration
Professional tax is a tax levied by the state governments in India on individuals and entities engaged in certain professions, trades, and employment. As a responsible citizen, it’s important to comply with the professional tax regulations and ensure that you have registered for professional tax.
At Setupfiling.com, we offer professional tax registration services to help you comply with the regulations and avoid any penalties or legal issues. Our team of experienced professionals is well-versed in the latest tax laws and regulations, and we are committed to providing you with personalized and reliable service
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what is professional tax registration?
Professional tax registration is the process of obtaining a registration certificate from the state government in India for individuals and entities engaged in certain professions, trades, and employment. The tax is levied by the state governments and is collected by the employers from their employees and subsequently paid to the government.
Professional tax registration is mandatory for certain categories of individuals and entities, such as employers, professionals, and self-employed individuals. Failure to register for professional tax or pay the tax on time can result in penalties, fines, and legal issues.
Professional tax is a tax levied by the state governments in India on individuals and entities engaged in certain professions, trades, and employment. It is a source of revenue for state governments and is collected by employers from their employees and subsequently paid to the government.
The professional tax rate and threshold vary from state to state, and the tax is generally calculated based on the income earned by an individual or entity. In most states, the professional tax is applicable to employees who earn a monthly salary exceeding a certain amount, as well as self-employed individuals and professionals such as doctors, lawyers, and chartered accountants.
It’s important to note that professional tax is different from income tax, which is a tax levied by the central government on the income earned by individuals and entities. Professional tax is a state tax, and the revenue collected from it is used by the state governments to fund various social welfare programs and infrastructure development initiatives.
Applicability of Professional Tax Registration
Professional tax registration is applicable to individuals and entities engaged in certain professions, trades, and employment in India. The applicability of professional tax registration varies from state to state, and the tax rate and threshold also vary accordingly.
In most states, professional tax registration is mandatory for the following categories of individuals and entities:
Employers
Employers who have employees working for them and paying a salary exceeding the specified threshold are required to register for professional tax and deduct the tax from their employees’ salaries.
Self-employed individuals
Self-employed individuals such as doctors, lawyers, and chartered accountants who earn a certain amount of income are required to register for professional tax and pay the tax directly to the government.
Professionals
Professionals such as architects, engineers, and consultants who are engaged in a profession or trade and earn a certain amount of income are required to register for professional tax and pay the tax directly to the government.
Businesses
Businesses engaged in certain trades and professions such as advertising, commission agents, and contractors are also required to register for professional tax and pay the tax directly to the government.
It’s important to note that the applicability of professional tax registration and the tax rates may change from time to time, and it’s advisable to consult with a tax professional or the relevant state government department to determine the latest requirements and regulations.
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Documents Requried for Professional Tax Registration
The documents required for professional tax registration may vary from state to state in India. However, some of the common documents that may be required for professional tax registration are as follows:
- PAN Card: A copy of the Permanent Account Number (PAN) card of the individual or entity.
- Identity proof: A copy of any government-issued identity proof such as Aadhaar card, voter ID card, or passport.
- Address proof: A copy of any government-issued address proof such as Aadhaar card, voter ID card, or passport.
- Business proof: A copy of the business registration certificate or any other document that establishes the business existence, such as a partnership deed, memorandum of association, or certificate of incorporation.
- Bank account details: A copy of the bank statement or canceled cheque of the entity’s bank account.
- List of employees: For employers, a list of employees along with their salary details.
- Photographs: Passport-sized photographs of the individual or authorized signatory.
It’s important to note that the list of documents may vary depending on the nature of the entity, the state in which it is registered, and the specific requirements of the relevant state government department. It’s advisable to consult with a tax professional or the relevant state government department to determine the latest requirements and regulations.
State Where Professional Tax Registration Applicable in India
- Andhra Pradesh
- Maharashtra
- Assam
- Manipur
- Bihar
- Telangana
- Orissa
- Gujarat
- Mizoram
- Chhattisgarh
- Meghalaya
- Jharkhand
- Pondicherry
- Tripura
- Kerala
- Karnataka
- Tamil Nadu
- Punjab
- Madhya Pradesh
- West Bengal
State Where Professional Tax Registration not required
- Arunachal Pradesh
- Andaman & Nicobar
- Haryana
- Uttarakhand
- Delhi
- Chandigarh
- Himachal Pradesh
- Dadar & Nagar Havel
- Jammu & Kashmir
- Daman & Diu
- Uttar Pradesh
- Rajasthan
- Lakshadweep
- Nagaland
- Puducherry
Are you looking to start the process?
Don't hesitate! Our Tax Advisors are readily available! Give a call or chat with us. We are available 24*7 Hours