An Overview of Online Professional Tax Registration

An Overview of Online Professional Tax Registration Professional tax is a tax that is imposed by state governments on all salaried individuals. Professional tax is applicable to all working professionals, such as chartered accountants, lawyers and doctors. It is levied based on the individual’s employment, trade or profession. The tax rates differ across all states, however, the maximum amount that can be levied as professional tax is ₹2,500 per annum.

Easy Online Professional Eligibility

Professional tax applicability: Professional tax is levied on all types of trades and professions in India. It has to be paid compulsorily by every staff member who is employed in any private firm operating in India. Professional tax registration is the onus of every business owner, who must take up responsibility for deduction of professional tax and payment for the same. Professional tax for self-employed: Any professional who obtains a monthly regular income will need to pay the professional tax. By the word professional, we mean people employed in specialized fields such as accountancy, media, etc.

Who is exempted from paying professional tax?

The professional tax rules provide exemptions for a few individuals; the exemptions are different based on the state you belong to. The professional tax rules provide exemptions to the following individuals:

• Parents of children suffering from mental or permanent disability
• Members of the armed forces
• Individuals with permanent physical disability
• The age differs state wise
• Badli workers engaged in the textile industry
• Women agents under small savings schemes
• Guardians of mentally challenged individuals.

Benefits

Here are the reasons why one should never miss a professional tax payment

• Judicial requirement…
• Avoid paying penalties…
• Easy to comply…
• Deductions can be claimed…

Documents Required

• Certificate of incorporation
• PAN card of company
• Address proof + NOC
• Bank account proof
• Directors ID proof
• Shop & establishment certificate
• Salary register

Online Professional Tax Registration - Detailed Process

• Step 1: Provide documents
• Step 2: Provide employee details
• Step 3: Form submission
• Step 4: Verification
• Step 5: Acknowledgement (5–7 days)
• Step 6: Registration copy (10 days)

Employers

Within 30 days of the company's incorporation, the company/firm must get a professional tax enrollment certificate (PTEC) by registering on the government portal. The company/firm must have a professional tax registration certificate (PTRC) within 30 days of employing a staff member.The employers are supposed to deduct professional tax from the salary of the people employed under them and submit it at the professional tax department during the time of filing returns. The employers are supposed to deduct professional tax from the salary of the people employed under them and submit it at the professional tax department during the time of filing returns. The employer will have to register at the professional tax department before 30 days of its applicability.

What are the Consequences?

Though the actual penal interest or penalty can change according to each state’s legislation board, all states will be charged a penalty if they have not registered after the professional tax legislation is made applicable. Also, penalties will be charged if the payments are not made within the due date or if the return is not filed within the due date specified.

Why Nimble Trio

We at Vakilsearch are ready to assist you whenever you need. Here are some of the ways in which we can help you with online professional tax registration: Preparing the application It can be a muddling task to prepare the application as the terms and formalities can be a bit difficult to comprehend. Our professional tax experts do a proper assessment of the business and prepare a document for tax application with the government of the respective state. Filling out the application form Our experts will then fill out and submit the duly signed form with the concerned department in the respective city or town. Registration process The submitted application will then be scrutinized in detail by the relevant state government(s). Once found to be proper, your professional tax registration is done.

FAQ's

Professional Tax Registration Glossary

PT
Professional Tax
PTEC
Professional Tax Enrollment Certificate
PTRC
Professional Tax Registration Certificate
Direct Tax
Direct taxes are taxes imposed on income, capital gains and net worth. Gift tax, death duties and property tax are also considered direct taxes.
Double Taxation
Double taxation is juridical when the same person is taxed twice on the same income by more than one state. Double taxation is economic if more than one person is taxed on the same item.