Professional tax is the tax levied by the state governments in India by anyone earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. They are required to pay this professional tax. However, different states have different rates and methods of collection.

The owner of a business is responsible for deducting professional tax from the salaries of his employees and pays the amount so collected to the appropriate government department.

The professional tax is a slab-amount based on the gross income of the professional. It is deducted from his income every month. This tax is levied based on slab rates depending on the income of the individual. While on one hand income tax is collected by central government, Professional tax is collected by state government. However Professional tax is not levied in Delhi.

One needs to file for Professional tax return properly on or before the due date. Also if you own a trademark which you want to register then we can also provide with services of trademark registration.

Some Facts about Professional Tax Registration

  • In case of salaried and wage earners, the professional tax is liable to be deducted by the employer from the salary/wages and the same is to be deposited to the state government
  • In case of other class of individuals, this tax is liable to be paid by the employee himself
  • The professional tax is a slab-amount based on the gross income of the professional

Documents required for Professional Tax Registration

  • Online Application Form (Professional tax form)
  • Memorandum of Association & Article of Association
  • Residence address proof along with ownership details
  • Address proof of business location (Ownership details)
  • Two photographs of the directors
  • PAN of business and directors
  • Bank account details (cancelled cheque)
  • Establishment Certificate

Procedure for Registration of Professional Tax

  • Visit the web-site of the Sales Tax Department of the respective state.
  • Now the person needs to go to the PT registration link (e-registration link)
  • After this, TAN number needs to be mentioned
  • Then one needs to fill form 1 and form 2 for registration certificate and enrollment certificate respectively
  • Getting the acknowledgement for the submission of certificate
  • Granting PTRC & PTEC Certificate

FAQs :

Professional Tax is a tax which is levied at the state level in our country. People in professions like of a CA, Lawyer, CS, Doctor or a business person/Merchant and earn through such professions are liable to pay professional tax in some states of the country.

In case of Salaried and Wage earners, the Professional Tax is liable to be deducted by the Employer from the Salary/Wages and the Employer is liable to deposit the same with the state government. In case of other class of Individuals, this tax is liable to be paid by the person himself.

It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

Professional tax is deducted and paid by your employer. Hence, possibility of getting it back is remote. You can only go ahead and claim professional tax as a deduction from your salary under Section 16 of income tax act. Therefore once professional tax is paid, there can be no refund.

Section 16(iii): As per section 16(iii) of Income tax act, Professional tax on employment or tax on employment levied by state under article 276(2) of the Constitution is allowed as a deduction from the Salary income.

Professional Tax Registration and Compliance. Professional Tax is a tax levied by the State government. Professional tax is levied on income however earned in any trade and is usually paid by the employer.

Step 1: Visit the website

Step 2: At the bottom of the Home Page click on Know your TIN.

Step 3: Enter your PAN Number in the box provided.

Step 4: Your Name along with the Profession Tax Number will display. Click on the Number to see more details.

Step 5: Your detailed information will display.

The states which impose professional tax are Punjab, Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

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