Professional Tax Registration

Professional tax is a tax levied and collected by the State Government on every single earning individual who earns a living through any medium which can be a profession, trade, calling or employment.

In case of the salaried employees, the professional tax needs to be deducted from the salary by the employer on monthly basis and paid to the state government. If an individual is self-employed or in case he has no employer, the individual himself is liable to pay the professional tax.

REASONS

EASY COMPLIANCE

Compliance with professional tax regulation is easy. Professional tax registration can be obtained easily and compliance maintained easily.

STATUTORY REQUIREMENT

Employers in certain states are required to mandatorily obtain professional tax registration, deduct and pay service tax on behalf of employees.

AVOID PENALTY

Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time.

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    Start-up Registration

    Documents Required

     Proof that describe the date of business started.

     Accounting records.

     Details of employees.

     Details of paid salaries.

     Address proof.

    IMPORTANT DATE

    A monthly return in form no- 5 is to be filled latest by 15th of next month. If the number of employees is more than 20 than dealer can file E-Return through website.

     

    SLAB RATES

    ANDHRA PRADESH AND TELANGANA

    Professional tax in Andhra Pradesh is levied under the Andhra Pradesh Tax on Professions, Trades, Callings and Employment Act 1987.

    Monthly SalaryAmount Payable In Andhra Pradesh
    Upto Rs.15000Nil
    Rs.15001 to Rs.20000Rs.150 per month
    Rs.20000 and aboveRs.200 per month

    ASSAM

    Monthly SalaryAmount Payable In Assam
    Upto Rs. 10,000Nil
    Rs. 10,001 to Rs. 15,000Rs. 150 per month
    Rs. 15001 to Rs. 24,999Rs. 180 per month
    Rs. 25,000 and aboveRs. 208 per month

    BIHAR

    Monthly SalaryAmount Payable In Bihar
    Upto Rs. 25,000Nil
    Rs. 25,001 to Rs. 41,666Rs. 83.33 per month
    Rs. 41,667 to Rs. 83,333Rs. 166.67 per month
    Rs. 83,334 and aboveRs. 208.33 per month

    GOA

    Monthly SalaryAmount Payable In Goa
    Upto Rs.15,000Nil
    Rs.15,001 to Rs.25,000Rs.150 per month
    Rs.25001 and aboveRs.200 per month

    GUJARAT

    Professional Tax in Gujarat is governed by the Gujarat Panchayats, Municipalities, Municipal corporations and State Tax on Professions, Trades, Callings and Employment Act 1976

    Monthly SalaryAmount Payable In Gujarat
    Less than Rs.5999Nil
    Rs.6000 to Rs.8999Rs.80 per month
    Rs.9000 to Rs.11999Rs.150 per month
    Rs.12000 & aboveRs.200 per month

    JHARKHAND

    Monthly SalaryAmount Payable In Jharkhand
    Upto Rs. 25,000Nil
    Rs. 25,000 to Rs.41,666Rs.100 per month
    Rs.41,667 to Rs. 66,666Rs.150 per month
    Rs. 66,666 to Rs. 83,333Rs.175 per month
    Rs. 83,333 and aboveRs.208 per month

    KARNATAKA

    Professional Tax in Karnataka is levied under the Karnataka Tax on Professions, Trades, Callings and Employment Act 1976.

    Monthly SalaryAmount Payable In Karnataka
    Less than Rs.15000Nil
    Rs.15000 and aboveRs.200 per month

    KERALA

    Professional Tax in Kerala is payable Half Yearly

    Half Yearly SalaryAmount Payable In Kerala (Half Yearly)
    Up to Rs.11999Nil
    Rs.12000 to Rs. 17999Rs.120
    Rs.18000 to 29999Rs.180
    Rs.30000 and Rs. 44999Rs.300
    Rs.45000 to Rs.59,999Rs.450
    Rs.60,000 to Rs. 74,999Rs.600
    Rs.75000 to Rs.99999Rs.750
    Rs.100000 to Rs. 124999Rs.1000
    Rs. 125000 and aboveRs.1250

    MADHYA PRADESH

    Professional Tax in Madhya Pradesh is levied by the Madhya Pradesh Vritti Kar Adhiniyam, 1955. Madhya Pradesh levies the Professional tax at Rs. 208 for 11 months and Rs. 212 for the last month

    Monthly SalaryAmount Payable In Madhya Pradesh
    Less than Rs. 18750Nil
    Rs.18750 to Rs.25000Rs.125 per month
    Rs.25000 to Rs. 33333Rs. 167 per month
    Rs. 33333 & aboveRs. 208 & 212 per month

    MAHARASHTRA

    Professional Tax in Maharashtra is governed by the Maharashtra State Tax on professions, Trades, Callings and Employment Act 1975 which came into effect from 1st April 1975

    Monthly SalaryAmount Payable In Maharashtra
    Less than Rs.7500Nil
    Rs.7501 to Rs.10000Rs.175 per month
    Rs.10001 and above
    Women who earn the salary up to Rs. 10,000/- per    		Rs.200 per month except for the month of Feb
    month are exempted from paying Professional TaxRs.300 for the month of Feb

    MANIPUR

    Manipur levies the Professional tax at Rs. 208 for 11 months and Rs. 212 for the last month.

    Monthly SalaryAmount Payable In Manipur
    Up to Rs. 4250Nil
    Rs. 4251 to Rs.6250Rs.100 per month
    Rs.6251 to Rs.8333Rs. 167 per month
    Rs.8334 to Rs. 10416Rs.200 per month
    Rs.10417 & aboveRs.208 & 212 per month

    MEGHALAYA

    Monthly SalaryAmount Payable In Meghalaya
    Up to Rs.4166Nil
    Rs.4167 to Rs.6250Rs.16.50 per month
    Rs.6251 to Rs.8333Rs. 25 per month
    Rs.8333 to Rs.12500Rs. 41.50 per month
    Rs.12501 to Rs. 16666Rs. 62.50 per month
    Rs.16667 to Rs. 20833Rs. 83.33 per month
    Rs.20834 to Rs. 25000Rs.104.16 per month
    Rs.25001 to Rs. 29166Rs.125 per month
    Rs.29,167 to Rs. 33,333Rs.150 per month
    Rs.33334 to Rs. 37500Rs.175 per month
    Rs.37501 to Rs. 41666Rs. 200 per month
    Above 41667Rs. 208 per month

    ODISHA

    Monthly SalaryAmount Payable In Odisha
    Up to Rs.13304Nil
    Rs.13305 to Rs.25000Rs.125 per month
    Rs. 25001 and aboveRs.200 per month except for the month of Feb
    Rs.300 for the month of Feb

    PUNJAB

    Class Of PersonAmount Payable In Punjab
    All such persons who are assessable under the Head Income from Salaries and/ or Wages as per the Income Tax Act, 1961. i.e., if the income of the individual is more than 2.5 Lakhs per yearRs. 200/- per month
    All such persons who are assessable under the HeadRs. 200/- per month
    Income from Business and/ or Profession as per the Income Tax Act, 1961. i.e., if the income of the individual is more than 2.5 Lakhs per year 

    PUDUCHERRY

    Monthly SalaryAmount Payable In Puducherry
    Up to Rs.3500Nil
    Rs.3501 to Rs. 5000Rs.16.66 per month
    Rs.5001 to Rs.9000Rs.40 per month
    Rs.9001 to Rs.10000Rs.150 per month
    Rs.10001 to Rs. 12,500Rs.126.67 per month
    12501 and aboveRs.182.50 per month

    SIKKIM

    Monthly SalaryAmount Payable In Sikkim
    Up to Rs.20000Nil
    Rs.20001 to Rs.30000Rs.125 per month
    Rs.30001 to Rs.40000Rs.150 per month
    Rs.40000 & aboveRs.200 per month

    TAMIL NADU

    Professional Tax in Tamil Nadu is levied under the Town Panchayats , Municipalities and Municipal Corporations Rules 1988.

    Half Yearly SalaryAmount Payable In Tamil Nadu (Half Yearly)
    Upto Rs. 21000Nil
    Rs 21001 to Rs.30000Rs.135
    Rs.30001 to Rs.45000Rs.315
    Rs.45001 to Rs.60000Rs.690
    Rs.60001 to Rs. 75000Rs.1025
    Rs. 75001 and aboveRs.1250

    TRIPURA

    Professional Tax in Tripura is payable half yearly

    Monthly SalaryAmount Payable In Tripura
    Up to Rs.5000Nil
    Rs.5001 to Rs.7000Rs.70 per month
    Rs.7001 to Rs.9000Rs.120 per month
    Rs.9001 to Rs.12000Rs. 140 per month
    Rs.12001 to 15000Rs.190 per month
    Rs. 15001 and aboveRs.208 per month

    WEST BENGAL

    Professional Tax in West Bengal is levied under the West Bengal State Tax on professions, Trades, Callings and Employment Act 1979.

    Monthly SalaryAmount Payable In West Bengal
    Up to Rs.10000Nil
    Rs.10001 to Rs.15000Rs.110 per month
    Rs.15001 to Rs.25000Rs.130 per month
    Rs.25001 to Rs.40000Rs.150 per month
    Rs.40000 & aboveRs.200 per month

    STATE AND UNION TERRITORIES WHERE PROFESSIONAL TAX IS NOT APPLICABLE

    Arunachal Pradesh
    Andaman and Nicobar
    Chandigarh
    Chhatisgarh
    Dadra and Nagar Haveli
    Daman and Diu
    Delhi
    Haryana
    Jammu and Kashmir
    Lakshadweep
    Rajasthan
    Uttaranchal
    Uttar Pradesh
     

    PENALTY

     In case of delay in obtaining the registration certificate, a penalty of ? 5 per day in case of the employer and ₹ 2 per day in case of a non-employed individual shall be imposed.

     In case of delay in payment of professional tax, a penalty of 2% per month of the amount of tax shall be levied. However, in case of non-payment of such professional tax, the assessee would attract an additional penalty of 10% of the amount of tax due.

     In case of delay in filing the returns, a penalty of ₹ 1,000 shall be charged if the returns are filed within 1 month after the due date. Where the return is not filed even after 1 month post the due date of filing return, the penalty shall be ? 2,000.

     If the information provided by the individual at the time of enrolment is found incorrect or false, it shall attract the penalty of three times of the professional tax payable.

    FREQUENTLY ASKED QUESTIONS

    Every person engaged actively or otherwise in any profession, trade, callings or employment and falling under one or the other of the classes mentioned in the second column of Schedule I appended to Profession Tax Act, is liable to pay Profession Tax.

     

    The categories of persons liable for Profession Tax are any individual, a Hindu Undivided Family, firm, company, corporation or other corporate body, any society, club or association.

     

    An employer liable to pay Profession Tax is assessed under Profession Tax Act.

     

    Every employer is liable to deduct Profession Tax (as per the Schedule to the Profession Tax Act) from the salary/wages paid to his employees & to pay the Profession Tax so deducted.

     

    Every employer who is liable to pay Profession Tax on behalf of his employees, whom he pays salary/ wages in the taxable limit, is liable to obtain a Certificate of Registration.

     

    The date of liability will be the date on which the employer disburses salary/wages to any of his employees in the taxable limit, for the first time.

     

    “Salary” or “Wage” includes pay, dearness allowance and all other remunerations received by any person on regular basis, whether payable in cash or in kind, and also includes perquisites, and profits in lieu of salary, as defined in section 17 of the Income tax Act, 1961 (43 of 1961); the expression “on regular basis” shall mean for a period exceeding 180 days in a year.

     

    Generally, after a few working days of registration, the user-id and password (for filling return electronically) can be obtained from the concerned Profession Tax authority, on production of original RC.

     

    The registration number is permanent unless the certificate is cancelled.

     

    In this case, you will not be able to generate Demat certificate in on-line process.