Professional Tax Registration
Professional Tax is that kind of tax which is levied by different Indian State Governments on the working professionals working in non-government or government entities or practicing professions like Medicine, Law, and Chartered Accountancy, etc. or carrying some kind of businesses. These working professionals needs to pay the professional tax.
The professional tax is imposed by the different states in India. Various states have different methods and rates of collection. The professional tax is not imposed in all the states of the India. Those states which are imposing the professional tax are West Bengal, Tripura, Telangana, Tamil Nadu, Sikkim, Odisha, Meghalaya, Madhya Pradesh, Maharashtra, Kerala, Karnataka, Gujarat, Chhattisgarh, Assam, and Andhra Pradesh etc.
From the salary of the salaried employees, the employer deducts the professional tax and then this tax is deposited to the state government. Municipal corporations of few states levied the professional tax and majority of the Indian states impose this tax. For the State Government, the professional tax is an important source of profit and it helps the State Government in executing many schemes for the region development and welfare.
Professional tax is need to pay by those staff who works in the private companies. It is necessary to pay the professional tax. The professional tax is charged at a pre-defined rate and this rate is determined on the slabs of the Income tax by the many State Governments. The amount of paid professional tax during an assessment year is permitted as deduction under the Act of the Income Tax.
Within thirty days after recruiting the staff in a company, the registration of the professional tax is essential or, if the professions are salaried, thirty days from the practice beginning. From the wages or salary paid to the employees, the professional tax is deducted. For each state, the amount deducted for the professional tax is varies. But it is not more than rupees 2500 each year in any of the Indian states.
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What You Required To Know
You need to register yourself for the professional tax, if the employees working in your companies in more than one state. The profession tax rate is totally different in various states. Majority of the small business owners find it very difficult to fulfill the stringent requirements of the profession tax. Majority of the Indian states does not impose this kind of tax.
The return filing frequency is depending on the place where you have the residence. If you earn five thousand rupees each month, then you need to file the return each year. If your total earnings are less than rupees 20,000 then you need to file the returns after every quarter. If your total earnings in a month exceeds rupees 20,000 then you need to file the return every month
If you are a resident of West Bengal, then you need to file the return only once every year. This approach is adopted by many states in the India.
If you are living in the Maharashtra, and you don’t pay the tax on the time, then you need to pay of penalty of 10% of the amount owned to you for the tax purpose. If there is more delay then you need to pay rupees 2 each day.
Slab Rates and Profession Tax around India
- West Bengal Profession Tax
In the West Bengal, the Profession tax is administered by Professions, Trade, Callings and Employment Act, 1979. In the West Bengal, slab rates are initiated at Rs. 90 each month for those professionals who earns a salary of around Rs. 8500 every month. The highest charge of Rs. 200 is only for those professionals who earns more than Rs. 40,000 each month.
- Andhra Pradesh Profession Tax
In the Andhra Pradesh, professional tax is administered by Professions, Trade, Callings and Employment Act, 1987. Those working professionals who are earning Rs. 15,000 and more each month require to pay the Profession tax. This tax is initiated at Rs. 150, and is Rs. 200 each month for those working professionals whose earnings exceeds Rs. 20,000 every month.
- Gujarat Profession Tax
In the Gujarat, the Gujarat Municipal Corporations, Panchayats, Municipalities and State tax administers the profession tax as directed by the Professions, Traders, Callings & Employment act, 1976. Those working professionals whose earnings exceeds Rs. 6000 every month, the profession tax initiates at Rs. 80 every month and it is up to Rs. 150 per month for those people whose earnings Rs. 9000 each month.
Those working professionals whose total salary is Rs. 12000 each month, they need to pay Rs. 200 each month as professional tax.
- Maharashtra Profession Tax
The Maharashtra State tax administers the profession tax in Maharashtra via the Professions, Trades, Calling and Employment Act, 1975. All working professionals having a monthly salary of exceeding Rs. 7500 have to pay the profession tax.
Those working professionals whose salary falls between Rs. 7500 to 10,000 have to pay Rs. 175 every month, while working professionals having a high monthly salary have to pay Rs. 200 every month as professional tax.
- Tamil Nadu Profession Tax
In the Tamil Nadu, the profession tax is administered by the Municipalities, Town Panchayats, and Municipal Corporation Rules, 1988. All working professionals having a monthly salary of more than Rs. 3500 need to pay the profession tax. This tax initiates at Rs. 16 each month and it is Rs. 182 every month for the working professionals having a salary of more than Rs. 12,500.
- Karnataka Profession Tax
In the Karnataka, the Karnataka Tax administers the Profession tax as per the Professions, Trade, Callings and Employment Act, 1976. If a working professional having an income of Rs. 15,000 every month, then he has to to pay Rs. 200 every month as profession tax. If the salary of the working professional is not Rs. 15,000 every month, then he does not need to pay the profession tax.
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