Professional Tax is the tax levied by the various State Governments of India on salaried individuals working in government or non-government entities, or in practice of any profession, such as CAs, Lawyers, Doctors, etc. or carry out some form of business, are required to pay this professional tax. Professional tax is imposed at the state level in India.
2. A tax is a financial charge imposed upon a
taxpayer that is an individual or a legal entity
by a state or any other authorized body with a
purpose of funding various public
expenditures. One of such taxes is the
Professional Tax.
4. Professional tax is the tax by the state governments in India. Anyone earning an income from salary or anyone
practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay
this professional tax. Different states have different rates and methods of collection.
Professional tax is imposed at the state level. Different states have different rates and methods of collection. However,
not all states impose this tax. The states which impose professional tax are
• Karnataka
• Bihar
• West Bengal
• Andhra Pradesh
• Telangana
• Maharashtra
• Tamil Nadu
• Gujarat, Assam
The professional tax is a source of revenue for the State Governments. It is also payable by members of staff employed
in private companies.
6. The owner of a business is responsible to deduct professional tax
from the salaries of his employees and submit the amount so
collected to the appropriate government department.
He has to provide a return to the tax department in the prescribed
form within the specified time.
The return should include the proof of tax payment. In case the
payment proof is not enclosed, the return shall be deemed
incomplete and invalid.
8. Common documents required for Professional tax registration are :
Acknowledgment of Online submitted form along with the printout of the
originally submitted form
Self Attested Copy Of PAN Card
Proof of the Constitution of Business
Proof of the Residence of the Partners, Director & Proprietor
Proof of the Place of Business (Address Proof)
Blank Canceled Cheque
Shop and Establishment Certificate
PAN and PTEC Details of all the Partners or Directors
Details of the number of employees, as well as their salary slabs.
Also, it is to be noted that , all these documents are required to be self attested
10. The first step is to get registered as a ‘payee’ of professional tax in the local
Professional Tax Office under the respective State’s Act. This is mandatory for all
individuals, persons and bodies who are liable to pay professional tax.
As to calculation and payment of these taxes through prescribed forms and
methods, you have to do it yourself. Your calculation and payment has to be
audited and certified by a Chartered Accountant.
When it comes to employees however, it is the duty of the employer to deduct
Professional Tax. That is, apart from paying professional tax for its own activities,
every employer has to calculate, deduct and pay the professional tax on the
salaries paid to employees.
12. Register for Professional tax through LEGALRAASTA - Your online companion for professional tax registration. We
at LegalRaasta have helped over thousand companies in professional tax registration.
You first need to
Go to our website www.legalraasta.com and select Professional tax registration option.
Then Fill our online questionnaire.
Select a package. Here you can also opt for additional legal services like ITR filing and service tax registration
and pay accordingly.
Submit the required documents online to us and you are done on your part; we will take care of the rest.
Once, we are done you will be intimated and in case you have any query in between the process or if you want
to track your application status you can freely contact us.
That's it about professional tax registration.
