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PROFESSIONAL TAX REGISTRATION

₹ 12,499 (+ GST) 

WHAT IS PROFESSIONAL

TAX REGISTRATION?

Professional Tax filing is a mandatory imposition by municipal corporations in various states of India. Those who are practicing professionals such as CAs (Chartered Accountants), lawyers and

doctors must pay these taxes to the government. The business

owner deducts the professional tax from the salary of its employees

and pays this amount to the respective state government department.
 

In India, this kind of tax is levied at the state level. Different states

have different rates and collection methods. Professional tax is not

valid for all states. The states levying this tax are Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Odisha, Sikkim, Tamil Nadu, Telangana, Tripura, and West Bengal.
 

The professional tax rate is based on the income slab determined by the respective state governments. The quantum of professional tax applicable during a financial year can be claimed as a deduction under the Income Tax Act.

Documents required:

  • Address proof of establishment (Shop and establishment certificate etc.)

  • PAN of business, proprietors or partners or directors, whatever applicable 

  • Photo ID with address of partners or proprietors or director

  • Financial statements of the establishment along with salary details of employees
  • Certificate of incorporation and address proof in case of company
TIME LIMIT TO FILE PROFESSIONAL TAX

Professional Tax (P.T) registration applications must be submitted to the relevant State’s tax department within 30 days of employing staff.

In cases where there is more than one place

of work, there must be made a separate

application for each of those premises

according to their jurisdiction.

PENALTY IN CASE OF NON-COMPLIANCE

For each delayed day in obtaining a Professional Tax registration, there is a penalty levied of

Rs. 5. The penalty  is 10% of the amount of tax

for cases involving non-payment or late payment

of Professional Tax. Further, for late filing of the return, it may amount to a penalty of Rs. 300

per return.

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