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Professional Tax Return
Professional Tax Return
Every person who receives a salary is subject to professional tax, which State Government levy.
All working professionals, including chartered accountants, attorneys, and physicians, are subject to professional tax. It is assessed by the person’s occupation, trade, or profession. All states have different tax rates, but the annual maximum sum assessed as professionals tax is ₹2,500.
The professional tax is often calculated as a slab amount based on the professional’s gross income. Each month, it is subtracted from his pay check. Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh are the states that have enacted professional taxes. Employers are responsible for withholding professional tax from salaried and wage-earners’ salaries and wages and depositing it with the appropriate State Government. For individuals in other categories, this tax must be paid by the individual.
Importance of Professional Tax Registration in India
- Self-employed individuals and employers also should pay their professional tax based on their rates or salaries supplied by their respective states within the prescribed time.
- Professional tax registration internet banking is a judicial requirement in India, and anyone failing to do so may be liable for the penalty or legal problems.
- Professional tax is straightforward to follow and understand.
- The laws and regulations regulating professional tax impose few limits, and registration is relatively simple with straightforward monthly or yearly compliances.
- You can seek a deduction for professional taxes you’ve already paid. The professional tax service, a state tax, must subtract the professional tax from a professional’s fees, business income, and compensation.
Documents Needed to Register for Professional Taxation
For Individual/Proprietorship:
- Electricity Bill/Rent Agreement
- PAN Card of the Individual
- Individual’s Aadhaar Card
- Two passport-size photographs of the individual
- An individual’s signature on a blank piece of paper
- Returned bank statement
Other Organizations
- Articles of Association (AOA) and Company Memorandum of Association (MOA) of the Company
- DIR-12 (If any)
- Electricity Bill/Rent Contract
- Company or firm PAN
- Director’s PAN
- Director’s Aadhaar Card
- Individual’s two passport-size photos
- Signatory’s Letter of Authorisation
- Board Resolution passed for this purpose
- Signature on a blank piece of paper
- Bank statements and cancelled checks
Please note that the electricity utility bill is only necessary if a business location is owned. Otherwise, the rental agreement contract is required.
Difference Between a Professional Tax Enrolment Certificate and Professional Tax Certificate of Registration
The PTEC registration process and PTRC registration process are contrasted in the table below:
Professional Tax Registration Certificate | Professional Tax Enrollment Certificate |
Professionals, employers, and other organizations who hire workers and pay them salaries and wages are needed to get parts. | In contrast, self-employed people must have a certificate of professional tax enrollment to pay the company’s and the director’s professional taxes. |
PTRC registration is required of all people and entities working for any company. | However, PTEC is only necessary for those self-employed or who operate a commercial business. |
Once someone starts a profession or business, professional tax is relevant. Within 30 days preceding beginning a career, the individual must register with the appropriate department. | Everyone involved in a profession (business or service), except a partnership firm or HUF, must pay the Government a profession tax of ₹2,500 each year. |
Who is Exempted from Professional Tax?
The following conditions and people are free from paying the professional tax to their State Government:
- Parents of children who have mental or permanent disabilities.
- Those serving in the state who are members of the services as defined by the Army Act of 1950, the Air Force Act of 1950, and the Navy Act of 1957, including auxiliary forces or reservists.
- Employees of the textile sector who are Badli.
- People with a physical impairment that cannot be overcome (including blindness).
- Families of people with mental disabilities.
- People older than the age of 65.
Professional Tax Return with E-TAX HUB INDIA
All earning inhabitants of the state are required to pay professional tax if they fall under the tax brackets established by the state legislature. Here in our company we have professional Income tax experts to file your Professional Tax return on time and make you benefited in all way.
As was previously noted, it is not a tax levied by the Central Government like income tax. It is exclusively collected by a specific number of states in India. Since companies deduct professional taxes from employees’ salaries, employees do not have to contribute professional taxes out of pocket. Self-employed individuals whose income falls within the professional tax bracket are required to pay the appropriate amount to their respective State Government agencies and get a Professional Tax Certificate of Registration. Contact 9962903855 to get a complete Guidance on PTR.
